Infosys beats expectations; improves operational efficiency

Media (for the moment Zee Business is giving to some extent balanced views. For me it is a problem to view Zee Business always because most of their writings on the channel are in Hindi, which is difficult for me to read very fast.....Zee News/Business should see that they have an Ango-Hindi presentation also along with their Hindi presentation, on their channels to increase the viewship of non-Hindi speaking people like me....I am speaking of the writings on the channels or Hindi scripts used in the channel) is colluding with the vested interest groups to spin all cock and bull stories on Satyam Computers Ltd, so that shorters can make money. Today Rolta Ltd met with the same fate as some mischievous fellows send some outrageously false news to the masses that: Goldman Sach sold 64 lac share of ROLTA LTD and also promoters are selling out their stake in the company!!!

SEBI should do something to clips the wings of the media, the irresponsible (media) anchors and analysts who go on misguiding the investors/masses on a regular basis on various Television Channels (Zee TV's coverage of post Mumbai carnage is laudable)......

Today in the early hours, CNBC TV18 said that Infosys Technologies Ltd's results for the Q3FY09, were "bad set of numbers", which I protested immediately.......the subsequent news items from this channel, almost carried this theme.....

The time has come to close this channel altogether as it functions under the umbrella of a mysterious management, with a hidden agenda behind....Or simply sack Udayan Mukherjee, lock stock and barrel, we have heard enough of his ranting and chanting in the last few years. Let him open a new television channel and propagate his hidden agenda......How can such a fellow remain in this channel for so long with a such mischevious brain is a surprise element......

I remember how once (aftermath of Reliance Power Ltd's IPO) the noted analyst, Mr.Amitabha Chakraborty defamed/undressed Udayan M, by saying, "Who will dare to refute you; you are such a learned fellow".

WILL SOME GOOD CHARTERED ACCOUNTS EXAMINE HOW THESE MEDIA COMPANIES WHO ALWAYS TALK ABOUT GREAT MORALS, PRESENT THEIR OWN BALANCE SHEETS IN THE PUBLIC DOMAIN OR HOW THEY HAVE BEEN DOING THE SAME IN THE LAST 5 YEARS???

Or should any investor/trader, carry on a "Sting operation on these media channels" to check whether they are fudging the accounts or not?? It is worth mentioning that off-late some media personalities have spoiled the name of journalism and given a new name to it as: "Opportunism and Agents of corruption".

Innocent investors believe in such "cock and bull stories", coming out of the media channels, especially when they are sprayed across the world through satellites. From the Satyam Computers Ltd's episodes it is only the media who is benefiting (in terms of generating more advertising revenues) and no one else..... What people fail to understand, in case of Satyam Computers Ltd is that, a finite accounting fraud of around Rs.7000 Cr has happened in the company over the years and nothing else. The company is still as it is and also its employees are still working......So where is the fear!!! Satyam Computers Ltd and its group company Maytas Infra Ltd has huge order book positions, whose good effect will spill over to the shareholders if the present management is able to utilize the full potential of the employees, with a rationalised pay structure.

I have written something in this link on Satyam Computers Ltd: http://www.onlineequitycalls.com/2009/01/6113/. If possible please visit this link........

Even if there is an acquisition by the L & T or by some other companies, the shareholders stands to benefit due to a favourable swap ratio......

Till now there is no evidence that Mr. B Ramalinga Raju cooked books to siphon money from the company to his own accounts. On the contrary he arranged funds (by pledging his stake in the company and from other sources as well) so that salaries of employees could be paid......The media till date never highlighted these facts......

HOWEVER THIS IS NOT A BUY CALL ON SATYAM COMPUTERS LTD TO ANYONE OR TO ANY GROUPS.

MUMBAI: The robust results by Infosys for the December 2008 quarter come on the back of improved operational efficiency. The country's second Estimated Q3 performance of cos largest IT exporter has reported substantial fall in its expenses including selling, marketing, general and administration (SG&A) costs thereby improving operating margin.

However, the company's performance in terms of revenue is said to have beat ETIG estimates as it was up by 0.8% and profit was up 9.2%.

Operating margin for the third quarter increased by 200 basis points (bps, 100 bps= 1%) 35.1% from the previous quarter. Compared to the year-ago levels, it expanded by 250 bps. Net margin improved by 190 bps on QoQ basis, while it fell by 50 bps on YoY basis.

Compared to the previous quarter, Infosys reported 180 bps fall in SG&A costs. On YoY basis, it contracted by 120 bps.

Also Read → Infosys sales rises 35.5% y-o-y, US share at 64.55% → Satyam shadow clouds IT firms Q3 results → SEBI for peer review; ICAI says would take 10-15 days.

The company reported improvement in operational efficiency across verticals. The biggest improvement was seen in banking, financial services and insurance (BFSI) vertical wherein operating margin improved by 380 basis points sequentially. This robust improvement comes at a time when the company is facing turbulence in BFSI space given the global financial turmoil. The retail vertical witnessed 240 bps jump in operating efficiency.

The company has marginally increased its FY 2009 revenue guidance by around 1% to Rs 21,552-21757 crore. EPS guidance is increased by 1.8% to Rs 102.9.

The stock of Infosys Technologies was up by more than 5% at Rs 1217.90 at 11.10 am.