Infosys profits up slightly despite currency woes

Jul 12, 2013

Indian software outsourcing giant Infosys posted slightly higher quarterly profit Friday and maintained its revenue growth forecast despite the weak rupee and uncertainty about U.S. visas for its employees.

Shares in Infosys jumped 12 percent on the Bombay Stock Exchange after the company stuck to its forecast of 6 to 10 percent revenue growth for the fiscal year ending March 2014. Some analysts had predicted Infosys would lower the forecast.

The company said profit for the April-June quarter rose 0.5 percent from a year earlier to $418 million.

It was the first earnings report since Infosys brought back co-founder N.R. Narayana Murthy in June as executive chairman. The company's last results disappointed with lower profits and a subdued growth forecast, so Friday's more positive outlook was welcomed by investors.

Infosys is a bellwether for India's $108 billion , which has been hit by weaker demand from American and European clients. The industry also is closely watching a provision in the U.S. immigration reform bill that would limit the number of special visas for IT workers.

"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well," CEO S.D. Shibulal said in a statement. He said he is "cautiously optimistic" about the rest of the year.

The weakening Indian rupee—which has lost 12 percent of its value since May 1—weighed down the company's dollar profits. In local currency terms, Infosys had net profit of 23.7 billion rupees for the June quarter, up 3.7 percent and beating the forecast of 2.1 percent growth in a survey of analysts by FactSet.

Explore further: Sony founder nephew starts as head of PlayStation unit

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Infosys profit up 5 percent, misses expectations

Oct 12, 2012

Profit at India's Infosys Technologies rose 4.9 percent in dollar terms for the September quarter, the company said Friday, missing expectations amid tepid demand from global clients struggling with economic uncertainty.

India's Infosys profit up 27% but shares tumble

Apr 13, 2012

Indian software exporter Infosys on Friday said its quarterly profit rose 27 percent, but disappointed the markets with a lower-than-expected growth forecast that saw its shares plunge.

Recommended for you

Job listing service ZipRecruiter raises $63 million

1 hour ago

ZipRecruiter, a California start-up that tries to simplify tasks for recruiters, has raised $63 million in initial venture capital funding as the 4-year-old service races to keep up with growing demand.

Alibaba IPO comes with unusual structure

10 hours ago

Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant's U.S. public offering will need to get comfortable with an unusual business structure.

User comments : 0