Really - In which metric was the result extremely poor.
Turnover - 146,767 (PY 121,641)
Operating margin around 22%
Net Profit - 24,108 (PY 22,146)
ROCE - 38.97%
full year order book is 9.8 billion USD.
How are these numbers extremely poor performance.
If you are referring to the market price of shares, it is pure sentiment, the narrative is recession in USA and war in europe will keep the IT spending in check. Yeah, might be true but as long as they have a tidy order book, the companies will be good. Great opportunity to add on and only worry about your average cost.
Yes. But we all know what happened during the 4th quarer. These are guidance numbers. How often do company always meet their guidance
Infosys’ revenue growth in constant currency terms came in at 4% sequentially, and 18.8% on a year-on-year basis, in line with analyst expectations.
These things are expected to happen. How a company tackle them shows their professionalism. In 2008 when the entire banking sector almost failed in USA, these company still survived and grew. With regard to guidance who has seen tomorrow, for that matter next year. It is all projections and anything can happen. Anybody could guess Credit Suisse would fail? Anyone thought few small banks would go under - No one can predict these things.
No. I do not think so. The historical numbers (based on financials) do not, in any way, indicate extremely poor performance. There is growth when compared to the previous year. When there is YoY growth, it is not ok to call it extremely poor performance. It is not.
But this is the beauty of stock market. When one person thinks the stock is going under there has to be another who thinks this is a great opportunity to buy in. Each one to their own, risk taking ability.
This I agree. With an order book of 9.8 billion, I am sure they will sail through the so called tough times. For Infosys and TCS, the world is their market and hence there could always be some order they might get in some remote country. They are not restricted to one geography. Their main cost is human capital and it just does not take long to re-adjust this by firing people and reducing the cost. Last year, if I remember right, most of these companies had to struggle with attrition and high wage cost, now this has stablised I think.