Infosys Q1 net rises 32.92%, shares slump
Country's second largest software firm Infosys today reported a 32.92% jump in consolidated net profit to Rs 2,289 crore for the first quarter ended June 30, 2012.business Updated: Jul 12, 2012 13:00 IST
Country's second largest software firm Infosys on Thursday reported a 32.92% jump in consolidated net profit to Rs 2,289 crore for the first quarter ended June 30, 2012.
The company had posted a net profit of Rs 1,722 crore for the April-June quarter of the previous fiscal (2011-12), Infosys said in a filing to the BSE.
Shares of Infosys tumbled over 10% after the company lowered its revenue guidance in dollar terms for 2012-13, dragging down the BSE benchmark Sensex.
The IT bellwether scrip opened the day on a weak note following the guidance at its quarterly results announcement this morning and lost 10.14% to touch a low of Rs 2,216.05 on the BSE. Later, it recovered some ground but was still down nearly 8.7%.
Similarly, on the NSE, the stock tanked 10.19% to a low of Rs 2,219.
Market experts blamed the weak revenue guidance, in dollar terms, by the company as the reason behind the steep fall in the stock.
"Infosys reported below estimate results in the first quarter. The company disappointed with the dollar revenue guidance for 2012-13. For Infosys, the dollar revenue guidance was weak, so investors adopted profit- booking," Ashika Stock Broking research head equities Paras Bothra said.
The company's revenues up 28.47% to Rs 9,616 crore in the first quarter from Rs 7,485 crore in the year-ago period. In dollar terms, the company's revenue stood at $1,752 million against $1,671 million in the same quarter last year, up 4.8%.
Though the company exceeded its revenues forecast in rupee terms, it failed to meet dollar revenue guidance of $1,771 million to $1,789 million for the quarter.
It had expected its rupee revenues to be in the range of Rs 9,011 crore and Rs 9,100 crore for April-June 2012.
In Q1, rupee revenues of software companies are expected to rise marginally on the back of depreciating rupee.
Infosys did not give a revenue guidance for July-September quarter, but revised its annual forecast for FY13 to be atleast Rs 40,364 crore (year-on-year growth of 19.7%) against previous guidance of Rs 38,431 crore-Rs 39,136 crore.
However, in dollar terms it has slashed its forecast of revenue to be atleast $7.34 billion (a growth of 5% y-o-y) against earlier guidance of $7.55 billion-$7.69 billion (a growth of 8-10% y-o-y).
This is much lower than Nasscom's growth estimate of 11-14% for the industry in FY 2013.