Mumbai: Software major Infosys Technologies on Tuesday surged as much as 6% in the early trade on the bourses after the company reported decent growth in quarterly earnings driven by a good operating margin.
In the morning trade on the National Stock Exchange, the scrip opened firm at Rs1,179.95. It surged to a high of Rs1,228.60, up 5.94% from previous close.
Similarly on the Bombay Stock Exchange, shares of Infosys surged 5.31% to a high of Rs1,218. Over 19.75 lakh shares changed hands on the bourses.
For the quarter ended 31 December, 2008, the IT bellwether reported a 33.31% growth in net profit at Rs1,641 crore. The company had a net profit of Rs1,231 crore in the corresponding period last fiscal.
Marketmen said that the scrip was driven mainly by the company’s earning figures, which was above expectations of the street amid the glum.
“The corporate governance premium and the standard of meeting guidance, coupled withe Q3 figures beating street expectations has pulled some positive buyers for the scrip,” Ashika Stock Brokers Research Head Paras Bothra said.
“Our operating margins during the quarter increased primarily due to depreciation of rupee which was to some extent offset by the depreciation of other major currencies against the US dollar,” Infosys Chief Financial Officer V Balakrishnan said.
The income from software services, products and business process management rose 35.47% to Rs5,786 crore.
“Despite slowdown in several verticals and geographies and the mounting pricing pressure, further downside in the scrip remains capped,” Bothra added.
Infosys was later trading at Rs1,215.90, up 5.13% on the BSE and at Rs1221.20, up 5.30% on the NSE, at 10:25am.