Infosys Technologies has recorded an impressive growth in topline during the recently concluded quarter due to rupee depreciation. However, in dollar terms, sequential growth in topline stood at a mere 1.1%.
EBITDA margins dipped 207bp q-o-q on account of the salary hikes carried out in April and higher visa costs. Nonetheless, the rupee depreciation witnessed during the quarter did mitigate margin pressure to an extent.
Infosys recorded a 4.2% q-o-q rise in bottomline during Q1FY09 despite margin contraction and lower other income (down 15.8% q-o-q). This was on account of a tax credit of Rs31 crore.
Excluding this, bottomline grew by just 1.8% q-o-q. The management has upgraded its FY2009 guidance and expects revenues to grow by 27.5-29.5%, while EPS is expected to be in the range of Rs99.34-101.06.
We remain positive on the stock and recommend investors to ACCUMULATE at every fall.