Infosys Q2 profit up 7.5%, signals revival mood
Software leader Infosys Technologies cheered the industry on Friday with better-than-expected quarterly results that showed a revival of growth after a downturn in Western economies hit the boom sector.business Updated: Oct 09, 2009 22:56 IST
Software leader Infosys Technologies cheered the industry on Friday with better-than-expected quarterly results that showed a revival of growth after a downturn in Western economies hit the boom sector.
Its net profit for July-September rose 7.5 per cent to Rs 1,540 crore from the year-ago period, but more significant was the optimistic guidance for the months ahead.
But concerns over a rise in the rupee – which erodes the value of earnings in US dollars — rattled investors. The company’s stock fell by 1.5 per cent to Rs 2,178 per share.
“We are confident of emerging stronger when the economic environment improves and better poised to deliver enhanced value to all our stakeholders,” said Kris Gopalakrishnan, chief executive officer.
Infosys revised its business outlook and hiring plans. It plans to hire 6,000 employees in the current quarter alone. For the full year, it aims to hire 20,000, up from the earlier planned 18,000.
“Infosys’ results were very much in line on the revenue front. Bottom-line was higher than expectations. The increase in guidance is encouraging but comes partly because of cross-currency fluctuations,” said Dipen Shah, senior vice-president, Kotak Securities.
The company signalled pricing pressure from clients seemed to have stabilised and clients stalled by the downturn were beginning to take purchase decisions again.
Infosys forecast revenue for the full year in dollar terms to fall 1.0-1.3 percent, a smaller drop than its earlier forecast for a drop of 3.1-4.6 per cent.