Infosys Q2 FY 2011 - 2012 Result Analysis

Infosys Q2 (FY 2012) consolidated net profit came in at Rs 1,906 crore, up around 11% as compared to Rs 1,720 crore in previous quarter (Q1 FY-2012).

The company’s revenues was up around 8.2% in the quarter to Rs 8,099 crore vs Rs. 7485 crore during the same period.

Earnings per share for the July-September quarter of 2011 was at Rs 33.3 as against Rs 30.14 in the previous quarter. 

The result was largely inline with consensus expectation. Dollar revenues growth guidance for FY12 lowered to 17.1-19.1% as against earlier guidance of 18-20%.
Company has upped its full year guidance for earnings per share to Rs 143.02-145.26 as against earlier of Rs 128.20-130.08. Infosys expects revenue for FY12 in the range of Rs 33,501-34,088 crore.

The press release of the second quarter result can be downloaded from the following link: Infosys Q2 Press Release

On the valuation front, even on conservative basis, if Infosys delivers FY 2012 EPS at Rs. 140 then at the CMP of Rs. 2500 the stock is currently trading at a PE multiple of less then 18 times. Hence long term investors with at least 1 year horizon can enter the stock at current level for at least 20% to 30 % appreciation.

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