A man uses a mobile phone in front of electronic screens displaying stock prices in the trading hall at the Karachi Stock Exchange (KSE) in Karachi, Pakistan. (Photographer: Asim Hafeez/Bloomberg)

Sensex, Nifty Clock Sixth Weekly Gains; Infosys Q3 Profit Beats Estimates

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Infosys Beats Profit Estimates, Maintains Sales Guidance

Infosys Ltd. surpassed profit estimates for the December ended quarter on a one-time tax benefit, and maintained its sales guidance for the financial year 2017-18.

The software developer’s net profit rose 37.7 percent to Rs 5,130 crore in the October-December quarter on a sequential basis, the company said in an exchange filing. The bottom line beat estimates after the company reversed income tax provisions of Rs 1,432 crore made in previous years after signing an advance pricing agreement with U.S. Internal Revenue Service. While Infosys has accounted for it in the third quarter, the actual amount is expected to be staggered over the next few quarter, it said in the notes to the financial statement.

Revenue rose 1.3 percent on a sequential basis to Rs 17,794 crore over the previous quarter. Analysts projected a figure of Rs 17,849 crore. Dollar revenue rose 0.98 percent to $2,755 million sequentially. BloombergQuint’s estimate stood at $2,753 million.

Earnings before interest and tax rose 1.7 percent to Rs 4,319 crore. The figure missed Bloomberg consensus estimate of Rs 4,278 crore. EBIT margins expanded 10 basis points to 24.3 percent and surpassed/was behind consensus estimate of 24 percent.

Closing Bell

Indian equity benchmarks rose to record highs in today's volatile session led by gains in ICICI Bank, Reliance Industries and HDFC.

The S&P BSE Sensex rose 0.26 percent or 89 points to 34,592.39 and the NSE Nifty 50 Index advanced 0.28 percent or 30 points to 10,681. On weekly basis, benchmarks clocked gains for sixth week in a row with the Sensex rising 1.28 percent and Nifty advancing 1.16 percent.

The mid-cap and small-cap indices underperformed their large cap counterparts as the S&P BSE MidCap Index fell 0.17 percent while the S&P BSE SmallCap Index was little changed.

Eleven out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Energy Index's 0.7 percent gain. On the flipside, the S&P BSE Realty Index was the top sectoral loser, down 1.46 percent.

Sensex, Nifty Clock Sixth Weekly Gains; Infosys Q3 Profit Beats Estimates

Fab Four Stocks Of The Day

  • KEI Industries: Shares of the Delhi-based stainless-steel wire maker rose as much as 13 percent, the most in nearly four months, to Rs 421 after Motilal Oswal initiated coverage on the stock with a buy for target price of Rs 537 indicating potential upside of 44 percent from yesterday's closing price.
  • Amtek Auto: Shares of the Gurugram-based auto component maker was locked in a 5 percent upper circuit at Rs 29.40 after the UK-based metals group Liberty House and American hedge fund Deccan Value Investors submitted bids to acquire the company, The Economic Times newspaper reported citing two officials.
  • Tata Global Beverages: The Kolkata-based coffee and tea producer rose as much as 4.8 percent, the most in nearly two months, to Rs 328.35 as it may sell stake in Amalgamated Plantations, The Mint newspaper reported.
  • HT Media: Shares of the Delhi-based news publisher rose as much as 5.36 percent, the most since Jan. 5, to Rs 117 after its announced its December quarter earnings.

Karnataka Bank Rises As Asset Quality Improves In Q3

Shares of the Mangalore-based private sector lender rose as much as 3.26 percent, the most in over two months, to Rs 167.95 after it reported December quarter earnings.

  • Net Profit at Rs 87.38 crore versus Rs 68.52 crore (YoY)
  • Gross NPA at 3.97 percent versus 4.13 percent (QoQ)
  • Net NPA at 2.85 percent versus 3.04 percent (QoQ)
  • Net interest income up 20 percent at Rs 451.5 crore versus Rs 376.5 crore (YoY)
  • Provisions at Rs 196.4 crore versus Rs 225.9 (QoQ); Rs 100.6 crore (YoY)

Idea Cellular Rises As NCLT Approves Vodafone Merger Proposal

Shares of the Aditya Birla Group telecom company rose as much as 2.7 percent to Rs 110 after the National Companies Law Tribunal approved its merger with Vodafone. Now, Idea-Vodafone merger awaits telecom department's approval and merger process is expected to complete by June 30.

Sensex, Nifty Clock Sixth Weekly Gains; Infosys Q3 Profit Beats Estimates