The Hindu Business Line : Infosys: EPS catching up with revenue growth

INFOSYS Technologies has announced an upward revision in guidance for both revenues and per share earnings for 2003-04. And this was the key highlight of its earnings announcement for the third quarter ended December 31, 2003.

Though this upward revision comes close on the heels of a similar revision made in the second quarter ended September 30, 2003, there is an interesting dimension this time around. It relates to the growth rates in the projected per share earnings catching up with the growth rate in projected revenues for 2003-04.

According to the latest guidance, the Infosys management has spelt out revenues from software development products and services of about Rs 4,715 crore and per share earnings guidance of Rs 186.20.

This revised guidance accounts for a revenue growth of 30 per cent and per share earnings growth of 29 per cent, bringing the two more or less in alignment in growth terms.

It may be recalled that the Infosys stock had been hammered on April 10, 2003 when its per share earnings growth guidance fell far short of the rise in revenue growth.

Infosys had announced then that it will record projected revenue growth of 23 per cent, but its post-tax earnings will rise by only 12 per cent in 2003-04.

In all fairness, it must be said that the projected per share earnings growth did not catch up with revenues in a single stroke.

In the second quarter ended September 30, 2003, Infosys had announced the first major round of upward revision in guidance. It revised revenues upwards to Rs 4,560 crore (26 per cent growth) and per share earnings to Rs 178 (23 per cent growth).

From this two-staged guidance revision, it appears that a combination of economic recovery in the US, traction in offshore outsourcing, relief in billing rate pressures and stability in operating margins have helped the per share earnings growth to fall in line with revenue growth.

More Stories on : Performance | Software | Microscope

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mishap in Vizag Steel plant

USFDA nod for Ranbaxy drug

Philip Morris seeks to regain say in Godfrey management

Maruti hikes prices

External commercial borrowing norms eased

Cinerama gets award

Kerala HC fiat on Pepsi plea for sales tax exemption

Mallya ups offer price to buy out Chhabria's stake in Herbertsons

ECPFs of corporate governance

PM lifts cap on investment abroad — Corporates can undertake overseas farm activities

Infosys: EPS catching up with revenue growth

Jubilant Q3 net up 90% on higher sales