Infosys Q1 net up 16%, but outlook muted
Software major Infosys on Tuesday posted a net profit of Rs1,722 crore for the April-June quarter, up 16% from the year-ago period, but the company’s outlook turned conservative for the rest of the year as it weighed in bumps in Western economic recovery. HT reports. Infosys reportbusiness Updated: Jul 13, 2011 02:40 IST
Software major Infosys on Tuesday posted a net profit of Rs1,722 crore for the April-June quarter, up 16% from the year-ago period, but the company’s outlook turned conservative for the rest of the year as it weighed in bumps in Western economic recovery.
Also, on a quarter-on-quarter basis, net profit slumped 5.3% as India’s second largest software exporter doled out salary increases to its army of 133,500-odd employees to retain them in an industry that sees a war for talent.
Quarterly net revenues of the company stood at Rs7,485 crore, up 21% from the same period a year ago, as it added 26 clients.
The company expects revenues for the fiscal year 2011-12 to grow at around 15.5% to 17.5% — largely the same as announced a quarter ago. Infosys usually increases the guidance after the first quarter. Its shares fell 4.3% to R2,794 as traders took in the conservative guidance.
Though concerned about the prevailing economic uncertainty across US and Europe in the near term, Infosys sees strong growth in the medium term.
“We are optimistic that in the medium to long term there will be strong growth so we need to build up capacity and recruit people. We will hire 45,000 people in the current fiscal, of which 12,000 will be hired during three months from July to September,” S ‘Kris’ Gopalakrishnan, CEO and managing director of Infosys, who takes over as executive chairman of the company next month, told HT.
SD Shibulal, the current chief operating officer, is due to take Gopalakrishnan’s position.
Gopalakrishnan said the company has been re-organised to be more focused on client industries, so that it can innovate more and respond to customer needs.