Infosys Ltd, India’s second largest IT conglomerate posted its Q1 results last week. The net profit of the company moved up by 22.7 % and stood at Rs.12620 Million against the net profit of Rs.10280 million  posted in the same period last year. The company‘s sales considerably increased around by 6 % as compared to the same period last year. The profit margin decreased because of the rise in the salary and visa costs due to the inflation hike. Inflation made the company to raise the salary up by 11-13%. But the depreciating rupee value aided the company to post a decent result for this quarter. The operating margin was at 30.4% as compared to last quarter’s operating margin of 32.5%. Last quarter the company got 49 major new clients. Revenues from the top clients lowered because the company lost one of its top Telecom clients in the last quarter. But the revenues from other clients nullified this loss. The revenues obtained from top ten clients increased by 3.8% over the previous period. Income from others moved up by 3.9%. The revenues from the offshore business seems to have increased as compared with the last quarter. Infosys saw a steady growth in all segments, manufacturing grew by 13.3%, banking and financial services grew by 4% and retail by 3.7% but telecom remained negative.  Last quarter the company recruited nearly 7150 people, and it is likely to hire nearly 25,000 people this quarter. Infosys is planning for two or three big acquisitions of Europe’s Major Corporates in this fiscal. Infosys is planning to pour $300 Million to $500 Million for this take-over. The company, in forth coming quarters is likely to earn more money from offshore especially from the European countries.

The company’s Financial Results is tabulated below

STOCK OUTLOOK

The Stock is now trading between Rs.1700-1800. Infosys is now in a medium term upward term after hitting Rs.1300 level in the middle of March. The stock has a strong support level at Rs.1400 and short term resistance level at Rs.2200.The quarterly results didn’t make any strong impact in the movement of the stock. Both medium term and short term investors may accumulate this stock at the level of Rs. 1700.