Results below estimates,say analysts

Infosys,which took a beating on the bourses,disappointed analysts with its lower-than-expected first quarter results. Though the results have improved on year-on-year basis,the company has witnessed a decline in net profit and EPS earning per share on a sequential basis. The 4.27 per cent fall in Infy stock dragged the Sensex down by 309.77 points.

Aniruddha Mehta, Research Analyst,IIFL,said,Infosys results were below our and street expectations. Reported dollar revenues came at 4.3 per cent with volumes in-line at 4 per cent but lesser than expected increase in realisation. Operating margins too were below expectations despite increase in utilisation and cross currency tailwind mainly because of salary hikes and increased Gamp;A expenses. He said net profit was in line due to strong other income contribution.

PBDIT and PAT margins have witnessed decline on both YoY and QoQ basis,reflecting the challenging environment that Infosys is facing. Though the management remains positive about growth prospects,we are maintaining a cautious stance till the time the future management policy under KV Kamaths guidance is clear, said Shanu Goel,senior research analyst,Bonanza Portfolio.