Infosys Reports Fairly In-Line Numbers

Apr.15.14 | About: Infosys Limited, (INFY)


INFY numbers out in India are a mixed bag compared to current consensus.

Guidance tweaked higher on USD basis, but still brow consensus.

INFY trading between 1-2% higher in local India trade.

  • For the quarter ended March 31, 2014 (fiscal fourth), INFY reported revenues of $2.09 billion and earnings of $0.85/share. Revenues were down 40 bps on a QoQ basis, while earnings per share were up 4.9%, also QoQ. Current consensus was $0.79/share and $2.11 billion in revenues. So a nice beat on earnings, but a small miss on revenues.

  • For the fiscal year ended March 31, 2014, INFY reported revenues of $8.249 million and earnings per share of $3.06/share. Sell-siders were expecting earnings of $3.03/share and $8.28 billion in revenues for the fiscal year. Again, a slight beat on the bottom line, and a slight miss on the top.

  • INFY ended the year with $5 billion in cash versus $4.4 billion a year ago. Shareholders should expect a final dividend of $0.72/ADS, using an exchange rate of $1 USD=INR 60. INFY added 50 new clients in the quarter and 238 in the fiscal year. INFY saw gross additions of 10,997 employees in the quarter, and 30,985 additions in the year. INFY finished the year with 160,405 employees.

  • The company is guiding the fiscal year ending March 31, 2015 to revenues growth of between 7-9%, which works out to between $8.826 billion and $8.991 billion. Current consensus is $9.06 billion. Management is being conservative, but it is what it is: revenues guidance is slightly lower than currently expected.

  • The company has also announced the addition of Carol Browner to the Board Directors.

  • For those of you that want to read about the business highlights, awards and recognitions, and peruse Ms. Browner's background, please use the following link to access the company's press release:
  • As far as our option positioning going into the earnings event, I expect the volatility premium to collapse when markets open, which should allow us to make between 65% and 80% on our trade overnight.

  • INFY is trading higher by 1.57% in local trade on the BSE (Bombay Stock Exchange) as I get ready to submit this article to the SA editors.

Disclosure: I am long INFY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Long and short calls and puts