On Friday Bengaluru-based IT-major Infosys announced its March ended results which beat street estimates with a net profit of Rs. 4,074 crore. The surge in net profit came about 13 % higher on a sequential basis while on a year-on-year basis, it rose 10.4%.
Infosys margins for the quarter ended March declined to 21.4% in comparison to 22.6% in the same quarter of the previous year, down 120 bps.
But contraction in respect of margins as well as cut-back in constant currency revenue growth guidance to 7.5-9.5% can limit the gains in the stock when it resumes trading on April 15.
"We don't see any positive reaction that we foresee on Infosys post these earnings. The guidance which the management has given reflects very clearly that new business, especially the larger ones, are going to come at the cost and margins," Prakash Diwan of prakashdiwan.in is quoted as telling one of the leading business channels.
After the results have been announced no major upside in the stock in foreseen. Also, the run in the Infosys stock, which in the current calendar year surged by as much as 13% and last year reported an increase of 30% in stock price, may no longer continue.
Infosys stock closed in Friday's session higher by 0.63% at Rs. 747.85 per share on the BSE.