Infosys Q3 net jumps 31 per cent

The Banglore-based IT major has posted a net profit of Rs 6.49 billion from Rs 4.97 billion last year.

India's second-largest software exporter, Infosys Technologies Ltd, reported a 31 per cent rise in its quarterly net profit on Wednesday, meeting forecasts, as technology outsourcing gathered momentum.

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Infosys, a showpiece of India's $17-billion software and office service industry, raised its full-year earnings-per-share forecast, expecting it at 89.9-90.3 rupees, or 30.7-31.3 per cent growth against 29.4-30 per cent growth estimated previously.

Bangalore-based, Nasdaq-listed Infosys said net profit in the third quarter ended December rose to Rs 6.49 billion ($147 million) from Rs 4.97 billion in the year-ago period, while revenue rose to Rs 25.32 billion from Rs 18.76 billion.

That compared with a consensus net profit of Rs 6.49 billion on revenue of Rs 25.21 billion in an agency poll of industry analysts in 10 brokerages.

"Profit is in line with expectations and the stock is expected to remain range-bound after rising sharply before the results," said Sindhu Sameer, head of sales at Karvy Stockbroking in Mumbai.

"The tech story looks intact," he added.

Infosys also gained in the quarter from a 2.3 per cent weakening of the rupee against the US dollar.

Infosys said it added 36 new clients in the latest quarter, while its total staff count rose by a net 3,226 employees to 49,422 people. The company also has an office-service subsidiary.

A $2.2 billion ABN Amro deal last year split between Infosys, TCS and Patni Computer Systems Ltd from India with Accenture and IBM marked a milestone for Indian firms in a quest to turn technology outsourcing from piecemeal projects into long-term deals and grab large chunks of business.

Infosys shares gained 19 per cent in the past quarter, in line with the industry index's gains.