Is Infy Topping Out in Earnings? Results in Charts.


We’re a few days late, but here’s Infy results in charts:

Revenue Growth Interesting YoY, Flat QoQ

They’ve grown revenues about 13% over the last year, but it’s been flat QoQ


Remember that the USDINR equation went above Rs. 60 in Sep 2013, which would have helped their rupee earnings. The rupee has fallen about 12% from last year, and their revenues are up 13%, so that’s about that.

Earnings, on a trailing 12 month basis, have grown 17% after a period of being very flat.


Headcount Growth is a concern

Infy’s trying to hire like crazy, but they’re losing people like crazy too. Their profits are coming in from higher utilization:


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Net additions are only 879 people in the June quarter, even though they hired more than 11,500 people! Meaning – the difference is the number that left the company.

Stock Performance

The stock is up about 25% from the lows of August 2013, but has been steadily falling since March. While the last month was good (a move from the 2900 levels back up to 3200) the stock remains a little shaky with support at the 50 day moving average (3167).


The next move will happen after Sikka takes over and the direction of the company changes. What’s really scary is that their employee count isn’t moving much, and they’re losing more people each quarter.

Disclosure: No positions.


  1. In the notes, they have mentioned that Rs 136 crore of depreciation was not done compared to last year due to re-assessment of assets. Has that helped improve net profit growth?

  2. Aint better idea to consider $ performance? Less profit could be attributed to some extraordinary expenses like hedging cost etc.

  3. I am confused between Camlin Fine & Kukoyo Camlin – post above mentions Kukoyo, the stock Kukoyo Camlin is quoting at 47, so which one did Kukoyo pick up?

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