Infosys shares surge on stronger revenue forecast

Jan 10, 2014 by Kay Johnson

Leading Indian IT outsourcer Infosys posted higher quarterly profit and raised its revenue projection for the year on Friday after gaining more than 50 international clients.

Shares of the Bangalore-based surged by 3 percent after it reported of $463 million, up 6.7 percent for the October to December quarter. It raised its revenue growth outlook for the financial year ending March to between 11.5 and 12 percent, up from 9-10 percent.

The robust performance raised hopes that Infosys is regaining its footing under chairman N.R. Narayana Murthy, a founder of the company who was brought back last year and has embarked on a campaign of restructuring and cost cutting.

The company said it added 54 new clients during the quarter. It reported revenue of $2.1 billion for the three months, up 10 percent over the same period last year.

Infosys was one of many Indian outsources that suffered lower spending by foreign clients during the but orders have recently picked up from the U.S. and Europe.

"We believe the has improved and our clients are gaining confidence to invest," said managing director S.D. Shibulal.

Several top executives have left Infosys in the past year, including chief financial officer V. Balaknrishnan in December. The company this month named two new presidents to beef up the management team.

"The recent changes in organization structure will enable us to strengthen client relationships and increase market share," Shibulal said.

Infosys has also benefited from the weakened rupee, which fell by more than 10 percent in 2013. It pays most of its employees in the Indian currency while collecting much of its contract revenue in dollars and euros.

Explore further: Why the Sony hack isn't big news in Japan

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

Related Stories

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.

Infosys profit down on visa investigation

Oct 11, 2013

Indian IT outsourcing giant Infosys posted a fall in quarterly profit Friday after setting aside funds for a visa-abuse investigation in the United States. Still, the company upgraded its revenue forecast for the year, pleasing ...

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 cuts revenue outlook, shares tumble

Jul 12, 2012

Shares in Indian software giant Infosys fell more than eight percent on Thursday after the company announced a surprise cut its full-year revenue outlook and reported a lower-than-expected profit.

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

Why the Sony hack isn't big news in Japan

20 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.