Infosys Q1 net falls 2.6 per cent at Rs 1490 crore, raises annual outlook

Infosys Q1 net falls 2.6 per cent at Rs 1490 crore, raises annual outlook


BANGALORE: Infosys Technologies edged up its forecast on a revival in outsourcing demand from its mainstay financial clients, but its shares fell as markets worried a weak European economy could curb orders. India's No. 2 outsourcer reported a surprise 2.6 percent drop in April-June profit and its sales contribution from Europe fell to about 20 percent from nearly 25 percent a year ago and 23 percent in January-March. ( Watch )

The company, a trendsetter in the country's showpiece IT services sector, added 1,026 staff in April-June, with a total of 115,000 employees in June its slowest pace of addition in four quarters. The lower-than-expected profit and hiring triggered concerns of a slowdown in growth, sending its shares 2.8 percent lower in a flat market. The stock hit a record high on Monday.

The Bangalore-based software giant gained 38 extra clients for the quarter.

Infosys, known for its conservative outlook, has raised its full-year revenue growth forecast in dollar terms in the last three consecutive quarters. The company expects earnings per American depositary share to rise 5.2 percent to 9.6 percent for the year, up from its previous forecast of 4.3 percent to 8.6 percent. The guidance has been revised from Rs 25,017 crore or 10 percent YoY projected at the beginning of this fiscal in April.

"There are still concerns lingering over Europe's debts and if the economy there is weak, consumption should be weak too," said Huey Yang, a fund manager with HSBC in Taipei. Infosys and local rivals Tata Consultancy Services and Wipro have raised salaries by 10 to 20 percent on average to keep staff from being poached by global rivals in a strong market. India's export-driven software services firms, however, face uncertainty on orders from Europe, the second-biggest market for the industry after the United States. Infosys, which counts Goldman Sachs, BT Group and BP among its more than 550 customers, forecast its 2010/11 dollar revenue to rise 19 percent to 21 percent, higher than 16-18 percent projected in April.

Read Full Article

Infosys Q4 profit at Rs 1617 crore; FY10 net up 5%

Infosys Q4 profit at Rs 1,617 crore; FY'10 net up 5%


Infosys to hire 30K this fiscal; hike wages by upto 17%


MUMBAI: IT major Infosys Technologies today reported a marginal rise of 0.25 per cent in consolidated net profit at Rs 1,617 crore for the fourth quarter ended March 31, 2010. ( Watch )

The company had a net profit of Rs 1,613 crore in the March quarter of the previous fiscal (2008-09), Infosys said in a filing to the Bombay Stock Exchange.

Income from software services, products and business process management rose to Rs 5,944 crore for the fourth quarter from Rs 5635 crore in the year-ago period.

The company's cash and cash equivalents stood at $3.5 billion at the end of March 31, 2010.

"We maintained our margins in one of the toughest years for the industry. The currency volatility continues to be a concern for the industry. We have an active hedging programme to minimise its impact on our margins," Infosys CFO V Balakrishnan said.

For the year ended March 31, the IT bellwether posted a consolidated net profit of Rs 6,266 crore, up 4.64 per cent over the year-ago period.

The board has declared a final dividend of Rs 15 per share for the fiscal on every share of Rs 5 held. Shares of Infosys were trading at Rs 2,668.45, down 0.55 per cent over the previous close on BSE. During the fiscal, income from software services, products and business process management rose to Rs 22,742 crore from Rs 21,693 crore in the previous fiscal (2008-09). "We have been able to take advantage of the opportunities in the market and grow faster due to our investments in capacity and capability building even during the economic downturn," Infosys CEO and MD S Gopalakrishnan said. Infosys, which has Goldman Sachs, BT Group and BP Plc among its clients, added 47 clients during the quarter. At the end of March 31, the company had 1,13,796 employees, which includes a net addition of 3,914 staff during the fourth quarter. "Though the economic environment continues to be challenging, businesses are investing in growth for building a better future," Gopalakrishnan added. On a standalone basis, the company has posted a net profit at Rs 1,430 crore for the March quarter, a decline of 8.85 per cent over the same period last fiscal.

Nifty ends flat; IT index jumps 3% on Infy nos

Src:ET and Moneycontrol