India's Infosys posts profit dip on slowdown

Apr 15, 2009
The Infosys campus in Bangalore. India's Infosys Technologies said its consolidated net profit for the fiscal fourth-quarter rose 29 percent from a year earlier, but fell sequentially due to the global slowdown

India's Infosys Technologies said Wednesday its consolidated net profit for the fiscal fourth-quarter rose 29 percent from a year earlier, but fell sequentially due to the global slowdown.

The outsourcing giant's in the January-March period rose to 16.13 billion rupees (325 million US dollars) from 12.49 billion rupees a year earlier.

But it was below the previous quarter's net profit of 16.41 billion rupees.

The result was slightly above market expectations, but India's second-largest software exporter disappointed with a drop in earnings expectations for the current financial year which began April 1.

The firm said it expects revenue of 4.35-4.52 billion dollars, down 3.1-6.7 percent year-on-year.

Senior company executives said international economic trends would force Infosys to freeze wages and cut recruitment.

"Employees will not get salary hikes or promotions this fiscal year," Infosys board member T.V. Mohandas Pai told reporters at a news conference here.

"We are not going to recruit anyone this year in view of the uncertainty. We will, however, absorb all the 18,000 people to whom offer letters were given last time."

Pai said the company's board members had taken pay cuts.

Infosys stock fell 38.3 rupees or 2.72 percent to 1,370.8, with the market not enthused by the company figures.

(c) 2009 AFP

Explore further: Nokia posts higher Q3 profits on one-off tax gain

add to favorites email to friend print save as pdf

Related Stories

Taiwan's HTC says profit down 30 percent

Apr 06, 2009

Taiwan's smartphone maker HTC Corp posted a year-on-year 30 percent fall in first quarter net profit as the global economic meltdown hit sales, the company said Monday.

Semiconductor revenue down 5 pct in 2008

Apr 08, 2009

Worldwide semiconductor revenue fell by more than five percent last year and could face a "far worse" decline this year, market research firm Gartner Inc. reported on Wednesday.

RIM Profit Up Sharply, Says SEC Upgrades Probe

Apr 12, 2007

BlackBerry maker Research In Motion reports a sharply higher fourth-quarter profit, adding about a million subscribers and forecasting more growth for the upcoming quarter.

Japan's Sharp sees deeper net loss

Apr 08, 2009

Japanese electronics giant Sharp Corp. said that it had fallen deeper in the red than expected in the past year, suffering its first-ever loss due to the economic downturn.

Recommended for you

Nokia turnaround since handset unit sale continues

6 hours ago

Nokia appears to have turned around its fortunes after the sale of its ailing cellphone unit to Microsoft, reporting a third-quarter net profit of 747 million euros ($950 million), from a loss of 91 million euros a year earlier. ...

Yahoo CEO defends strategy in face of criticism

6 hours ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

6 hours ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0