Tuesday, August 26, 2008

Infosys inches ahead on large overseas acquisition

Infosys Technologies gained 0.41% to Rs 1710 at 9:56 IST on BSE after the company said it has agreed to acquire UK based SAP consulting company Axon Group plc, for 407.1 million pounds or Rs 3310 crore.
Infosys' American depository receipt lost almost 4% on the Nasdaq yesterday, 25 August 2008, after the announcement. The company made the announcement after trading hours in India and before trading hours in the US.
The stock hit a high of Rs 1710 and a low of Rs 1695 so far during the day. The stock had hit a 52-week high of Rs 2140 on 10 October 2007 and a 52-week low of Rs 1212.20 on 22 January 2008.
The company has an equity capital of Rs 286.17 crore. Face value per share is Rs 5.
The current price of Rs 1710 discounts its Q1 June 2008 annualised EPS of Rs 88.25, by a PE multiple of 19.38.
Axon provides consultancy services to multinational organizations that have chosen SAP as their strategic enterprise platform and has about 2000 employees. Axon reported profit after taxation of 20.2 million pounds (Rs 160 crore) on revenue of 204.5 million pounds or Rs 1660 crore in the year ended 31 December 2007.
Infosys Technologies’ net profit rose 6.64% to Rs 4516 crore on 6.77% growth in net sales to Rs 1262 crore in Q1 June 2008 over Q4 March 2008.
Infosys provides information technology (IT) services. The group's services include consulting, software development, software re-engineering, systems integration, package evaluation and implementation, software maintenance and business process management.

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