Meanwhile, the BSE Sensex was up 74.83 points, or 0.44%, to 16,951.99 as per provisional closing .On BSE, 1.86 lakh shares were traded in the counter as against an average daily volume of 1.84 lakh shares in the past one quarter.
The stock hit a record high of Rs 2549.90 in intra-day trade today, 16 December 2009, which is a record high for the counter. The stock hit an intra-day low of Rs 2486. The stock hit a 52-week low of Rs 1065 on 29 December 2008.
The large-cap stock had outperformed the market over the past one month till 15 December 2009, rising 6.26% as compared to the Sensex’s 0.17% rise. It had also outperformed the market in the past one quarter, advancing 10.42% as compared to the Sensex’s return of 2.57%.
India’s second largest software exporter by sales has an equity capital of Rs 286.66 crore. Face value per share is Rs 5.
The current price of Rs 2548 discounts the company’s Q2 September 2009 annualised EPS of Rs 100.21, by a PE multiple of 25.42
Reports citing Subhash Dhar, senior vice-president and head of global sales and marketing at Infosys said the company expects revenue growth in the fiscal year starting in April 2010 to be better than the previous year as a recovery in the global economy spurs investments by its clients.
Dhar said there was stability in outsourcing demand in the financial sector, which was hit hardest by the global economic downturn and which accounts for a third of Infosys’ revenue.
Growth in the country’s once-booming software services firms had slowed sharply as the largest downturn since the Great Depression triggered a collapse in outsourcing demand from overseas clients and put pressure on prices.
Meanwhile, Infosys BPO, an arm of Infosys Technologies, on Tuesday reportedly said it has completed the acquisition of US based insurance and retirement business process solutions provider McCamish Systems LLC.
Founded in 1985, McCamish Systems provides innovative solutions to the insurance and financial services industries. For the year ended 31 December 2008, McCamish Systems reported revenue of $38.2 million.
As per recent reports the world’s largest retailer Wal-Mart Stores Inc has picked three IT vendors including Infosys for multi-year contracts worth over $600 million, or Rs 2,750 crore. The other two IT vendors are Cognizant Solutions and UST Global. Initially, the three vendors are expected to earn Rs 250 crore to Rs 300 crore, each, annually. The figure is set to grow as Wal-Mart increases outsourcing of work from its main merchandising division.
Infosys and Cognizant, which will provide application development and support, are expected to get a larger share of the contract, reports suggested. UST will be responsible for testing these applications.
Meanwhile, Infosys expects four business segments it entered in the past three years to each contribute at least $1 billion (Rs 4,620 crore) in revenue by 2013, as the company executes a strategy that will reduce its dependence on so-called low-end or commodity services where profits are low and competition, high.
Infosys’ chief operating officer S D Shibulal was quoted by the media as saying recently that the four segments — infrastructure management, independent testing and validation, business process management and system integration — each currently contribute $250 to $300 million a year.
Infosys’ consolidated net profit rose 0.85% to Rs 1540 crore on 2.06% growth in revenue to Rs 5585 crore in Q2 September 2009 over Q1 June 2009. The operating profit margin rose to 34.6% in Q2 September 2009 from 34.1% in Q1 June 2009
Infosys provides information technology (IT) services. The group’s services include consulting, software development, software re-engineering, systems integration, package evaluation and implementation, software maintenance and business process management.
Source : http://www.indiainfoline.com/Markets/News/News.aspx?NewsId=360453
