Bangalore: Infosys surprised the market by registering an increase of 33 percent, as opposed to the prediction of 23.4 percent, reports Economic Times. This increase is for the revenues of Q-3, 2011.

Full year revenue of Infosys in 2011 was lessened as its primary markets of the U.S. and Europe are hit by economic slowdown. Worth of Infosys had fallen by almost one fifth its original worth last year, registering a 16 percent fall in the sector index. Still, beating the odds, net profit of Infosys increased from 17.8 billion in 2010 to 23.72 billion ($457 million) in the Q-3 of 2011. This rise in net profit was due to 8 percent dip in the Indian rupee. Its income increased to 30.8 percent, collecting 92.98 billion from clients like - Procter & Gamble, Volkswagen AG and BP Plc. These firms provided additional 49 customers, who aided Infosys in reaping good revenue. Operating margin of Infosys was at 28.2 percent in Q-2 of 2011, beating those of Tata Consultancy Services (TCS) – 27.1 percent and IBM – 19.8 percent.

According to MoneyControl.com, Infosys fared better in terms of net profit in Q-3 of 2011 – 2372 crore than in Q-2 – 1906. Its Quarter-on-quarter (Q-o-Q) income rose by 14.8 percent to 9,298 crore from 8,099 crore. CNBC-TV 18 had predicted an income of 9,223 crore, with a net profit of 2,322 crore. Nilesh Shah of Envision Capital, said, "The fact that full year revenue guidance has been pulled down is a bit disappointing. But I don't think it is going to have a significant impact."

Earnings Before Interest and Tax (EBIT) of Infosys increased by 27 percent from 2,281 crore to 2,899 crore. EBIT margins on Q-o-Q basis increased from 28.16 percent to 31.17 percent. Earnings Per Share (EPS) fared better at 41.51 than the prediction of 38.51 to 39.20. It, however, lessened its Dollar Revenue Guidance from 17.1 to 19.1 percent to 16.4 percent. It also reduced its EPS guidance for financial year of 2012 from 147.13 to 143.02 to 145.26 in 2011.

Though Infosys is leading the Indian IT sector in terms of revenue and profit, its stock value is going down. Reuters reports that Infosys stocks have fallen by 2.7 percent in the pre-open trade this morning. This was due to it reducing its dollar revenue because of the Euro Debt Crisis. Its current stock value is 2,625. Its Opening Price today was 2,744, while it previously closed at 2826 yesterday. The fall in stock value is not necessarily a bad thing as this indicates that investors are trying to make as much money as possible when Infosys is performing so well. The fall in stock prices in turn will instigate investors to buy more Infosys stocks, thereby adding to the worth of Infosys.