Infosys Q1 net zooms 17%, rebound foggy | business | Hindustan Times
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Infosys Q1 net zooms 17%, rebound foggy

business Updated: Jul 10, 2009 21:18 IST
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Infosys Technologies Ltd, India’s second largest software services exporter, on Friday raised its net profit forecast for 2009-10 after reporting a high-than-expected 17 per cent rise in profit in the first quarter ended June 30, mainly aided by exchange rate gains.

Infosys said its net profit rose to Rs 1,527 crore in April-June 2009 from Rs 1,302 crore a year earlier. It revised its full-year revenues and earnings down marginally.

The IT major’s revenues grew by 12.7 per cent to Rs 5,472 crore from Rs 4,854 crore a year earlier. However, it reported a 2.9 per cent fall in net profit in the first quarter over last quarter of 2008-09 (Rs 5,635 crore).

It said staff strength fell in the quarter for the first time, despite hiring 3,538 employees. “During the quarter, Infosys and its subsidiaries added 3,538 employees (gross). The net decline during the quarter was 945,” the company said.

It also warned that contract prices could drop by another 5 per cent due to pressure from clients with no recovery expected in technology spending in the recession hit US-led markets by mid-2010.

Infosys added 27 clients during the quarter against 37 in January-March 2009. The company’s client tally dropped to 569 from 579 at the end of March 2009.

“We believe that it is too early to say the global economy is better. There are conflicting signals,” the company’s CEO Kris Gopalakrishnan said.

Chief Operating Officer SD Shibulal said the business environment was turbulent and marked by long decision-making cycles. “A recovery in technology spending is likely only by mid-2010,” he said.

Infosys said dollar denominated revenues for the quarter ending September 30, 2009 could drop 7.1 to 8.7 per cent from a year earlier.