New 52-week highs for Infosys post-earnings; Wipro also higher

|About: Infosys Limited, Inc. (INFY)|By:, SA News Editor

Infosys (INFY +5.3%) has jumped to levels last seen in early 2012 after posting strong FQ3 results and upping its FY14 (ends March '14) revenue growth forecast to 11.5%-12% from a prior 9%-10%. Rival Wipro (WIT +2.7%) is also higher.

Infosys' CC commentary (transcript) was moderately upbeat. CEO S.D. Shibulal says his company's business environment "has improved marginally in most business segments" and that clients are "becoming more confident about spending." But he adds customers "remain careful" with regards to spending decisions, and that Infosys 2014 customer budgets to be flat Y/Y.

Overall pricing is said to be "stable," though price pressure exists for major outsourcing deals and "commoditized services." Clients in the key financial services vertical are said to be focused on cost optimization, something the outsourcing giant expects to benefit from.

Infosys now has 495 $1M+ clients, up from 469 at the end of FQ2. Its top 10 clients account for 23.5% of revenue.

FQ3 opex growth was 7.3% Y/Y, slightly less than revenue growth of 9.9%. Gross margin was 36.1%, -90 bps Y/Y.

Shares also rallied following Infosys' October FQ2 beat.