Infosys Q3 net profit beats streets,but guidance disappoints

Infosys sales rises 35.5% y-o-y

In face of the severe global recession, Infosys Technologies Ltd on Tuesday posted a handsome year on year growth of 35.5 per cent in sales the third quarter. Sales for the December quarter rose to Rs 5,786 crore from Rs 4,271 crore same period last year. However, the sales growth has considerably slowed from the last quarter’s in percentage term. Infosys posted a quarter-on-quarter growth of just 6.8 per cent against 11.6 per cent reported for the September quarter. For the September quarter, the sales stood at Rs 5,418 crore. On the net profit front, Infosys has shown a growth of 14.6 per cent from September quarter as against 10 per cent in June quarter due to lower sales, marketing and administration expenses which declined by 7.2 per cent during the December quarter. The basic EPS rose to Rs 28.6 against Rs 25 in the last quarter. Surprisingly, although the US economy is into deep recession led by slump in realty and banking sector, Infosys garnered about 64.5 per cent of its total revenue from North America as against 61.5 per cent in September and 62.6 per cent in June quarter. Also, the major vertical remained insurance, banking and financial with a share of 34.9 per cent against 33.4 per cent in September and 34.5 per cent in the June quarter.

Infosys Q3 net up 14.5% QoQ; FY09 rev seen at $4.67-4.71 bn
IT bellwether Infosys Technologies declared a healthy performance in the October-December quarter, reporting 14.5 per cent rise in net profit to Rs 1641 crore as against Rs 1432 crore in the previous quarter. Income stood at Rs 5786 crore vs Rs 5418 crore (QoQ).

On a YoY basis, the IT major's Q3 revenues grew by 35.5 per cent while on a sequential basis, revenues rose 6.8 per cent. Infosys saw March quarter revenue between $1.13 billion and $1.17 billion. The software services exporter said 2008/09 revenue was seen between $4.67 billion and $4.71 billion, with full year earnings per share seen at Rs 102.92. Business outlook The company's outlook (consolidated) for the quarter ending March 31, 2009 and for the fiscal year ending March 31, 2009, under International Financial Reporting Standards (IFRS): • Consolidated revenues are expected to be in the range of $ 1,128 million and $ 1,170 million; YoY decline of 1.2% to growth of 2.5%; in constant currency, growth of 4.7% – 8.6% • Consolidated earnings per American Depositary Share are expected to be $ 0.55 • Consolidated revenues are expected to be in the range of $ 4.67 billion and $ 4.71 billion; YoY growth of 11.8% - 12.8%; in constant currency 15.6% – 17.6% • Consolidated earnings per American Depositary Share are expected to be $ 2.23; YoY growth of 9.9% Excluding the tax reversal, the YoY growth is expected to be 1.8% including net tax reversal pertaining to earlier periods of $19 million in fiscal 2009 and $ 30 million in fiscal 2008 respectively. Excluding the tax reversal, the earnings per share is expected to be $ 2.20 for the year ending March 31, 2009; YoY growth of 11.1%.

Infosys beats expectations; improves operational efficiency
Infy Q3 net up 14.6%, lowers full-year guidance
Infosys Q3 net up @ Rs 1,641 cr

Source:ET,MC,Rediff etc