Software bellwether Infosys Technologies set its stock soaring on Tuesday with a quarterly result performance that showed a better-than-expected profit figures and a forecast that revealed a rosier outlook towards the end of a fiscal year that saw its sales flat and profits dipping.
The company, hit by the recession in its prime market, the US, predicted a strong growth in the coming quarters and its stock rose 3.9 per cent.
Infosys posted a net profit of Rs 1,582 crore for the third quarter (Oct-Dec) of this financial year (2009-10), registering a decline of 3.6 percent year-on-year (YoY), but the figure was higher than what many analysts were expecting.
Total income for the company in the quarter was Rs 5,741 crore, which was 2.8 per cent up as compared to the last quarter but 0.8 per cent lower from a comparable period a year ago.
Infosys expects a 3.6 to 3.8 per cent year-on-year growth in consolidated income for the full financial year. It says revenue in dollars for the year to March 2010 will rise 1.8-2.0 per cent, reversing its October forecast for a drop of 1.0-1.3 percent.
The company has a cash chest of $3.1 billion (about Rs. 14,000 crore).
On new engagement models
We do expect the demand for these platforms-based services to increase in the future and that is the reason why Infosys has created solutions around it.
We have clients already engaged with us where we provide services using this model.