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Infosys lowers forecast, net up

Infosys Technologies met market expectations on Wednesday as it posted a 10% year-on-year increase in net profit for the July-September second quarter, bolstered by a weaker rupee that enhanced earnings made in US dollars. HT reports. How much more trouble ahead?

business Updated: Oct 13, 2011 01:20 IST
HT Correspondent

Software services major Infosys Technologies met market expectations on Wednesday as it posted a 10% year-on-year increase in net profit for the July-September second quarter, bolstered by a weaker rupee that enhanced earnings made in US dollars.

The company however, flagged off concerns in the global macroeconomic environment thereby lowering, by a notch, its revenue forecast in dollar terms, while raising it in rupee terms. The company’s shares zoomed 7% to Rs 2,680.5, outpacing the Sensex on long-term considerations.

The company which added 45 clients in the latest quarter, now expects revenues (in dollar terms) for the current fiscal to rise by 17.1% to 19.1% from its earlier projection of 18% to 20%.

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“We have to remain cautious because the environment continues to be challenging for lots of clients,” SD Shibulal, CEO and MD Infosys told Hindustan Times.

“It is and should be a concern for the IT industry.”

This is Shibulal’s first quarter results after taking over as the CEO in August this year.

In rupee terms Infosys has raised its revenue forecast for the current fiscal. Infosys now expects revenue to grow by 21.8% to 24% for the fiscal as compared to 15.5% to 17.5% revenues in the coming fiscal. The rupeee has weakened by around 12% over the last eight weeks.

The net profit of the company during the quarter stood at Rs 1,906 crore, up by 10% from the same period a year ago. Its revenues grew 17% to Rs 8,099 crore.

Infosys added a net of 8,262 employees during the quarter taking the total headcount to a little over 141,000 employees — the highest pace of quarterly employee addition in at least four years. The company maintained its previous forecast of adding 45,000 people in this fiscal year.

“During this fiscal we will give around 23,000 campus offers for people to join us during next year,” said Shibulal.