Infy result beats expectations

Fri, 11 Jan 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 1.2%) and Indonesia (up 0.4%) trading firm. However, the markets in South Korea (down 0.8%) and Singapore (down 0.5%) are facing selling pressure. The Indian equity market indices have opened the day on a firm note on the back of better than expected results by IT bellwether Infosys Ltd. Stocks in the IT space are leading with hefty gains. However, oil and gas and FMCG stocks are trading in the red.

The Sensex today is up by around 117 points (0.6%), while the NSE-Nifty is up by around 21 points (0.4%). Mid and small cap stocks are trading mixed with the BSE Mid Cap index down by about 0.1% and the BSE Small Cap index trading almost flat. The rupee is trading at Rs 54.46 to the US dollar.

Information technology stocks have opened the day on an upbeat note with Infosys Ltd, Tata Consultancy Services (TCS) and Wipro leading the pack of gainers. India's second largest IT firm Infosys Ltd has announced its financial results for the quarter ended December 2012. During the quarter, the company reported consolidated revenues of about Rs 104.2 bn as against Rs 98.6 bn during the quarter ended September 2012. This implies a quarter-on-quarter (QoQ) growth of 5.7% in the company's topline. The cost of sales grew at a higher rate of 7.6% QoQ. As such, the operating profit stood at Rs 26.8 bn, reporting a marginal growth of 3.1% QoQ. Operating margins declined from 26.3% in 2QFY13 to 25.7% 3QFY13. At the bottomline level, net profits for the quarter stood flat at Rs 23.7 bn, same as the preceding quarter. The stock of Infosys has opened with gains of about 11.8% over the previous day's closing price.

Oil & gas stocks have also opened the day on a weak note with Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) leading the losses. As per a leading financial daily, state-run Gas Authority Of India Ltd. (GAIL) has commissioned the 5 million tonne capacity liquefied natural gas (LNG) terminal at Dabhol facility in Maharashtra. The company further plans to double its capacity by 2016. This will be done in a phased manner by first completing construction of break-water facility which will help in expanding the terminal's capacity to 7.5 mmtpa over the next two years. And in the final phase the capacity would be increased to 10 mmtpa in 2016. It must be noted that the Dabhol terminal will serve as a gateway for entry of natural gas to the southern and western parts of India. Gail has long-term LNG import contract with Gazprom, a leading Russian energy company.