India's Infosys Q1 profit up 17.2 pct, beats forecasts

Jul 10, 2009

India's second-biggest software exporter Infosys announced Friday a better-than-expected 17.2 percent rise in first-quarter net profit, but said global conditions remained challenging.

Consolidated in the quarter ended June rose to 15.27 billion rupees (311 million dollars) from 13.02 billion rupees a year earlier, the company said in a statement to the .

Analysts had predicted a quarterly profit of nearly 14 billion rupees.

Revenues rose 10.1 percent to 54.72 billion rupees for the quarter.

The Bangalore-based software giant added 27 extra clients for the quarter and a gross addition of 3,538 employees.

"We believe that in the short term the global economic environment will continue to be challenging. We are working with our clients to help them navigate the downturn," said chief executive S. Gopalakrishnan.

On Friday, shares closed up 49.75 rupees or 2.97 percent to 1,726.5, after reaching a high of 1,767.

The company announced a cautious full-year outlook, forecasting revenues of between 214 to 217.4 billion rupees for the financial year to March 2010, suggesting sluggish growth.

Under US accounting norms, Infosys showed a net profit of 313 million dollars for the three months to June, up just 1.6 percent from a year earlier.

"Globally currency movement was volatile during the quarter, and the rupee gained against the dollar," said V. Balakrishnan, chief financial officer with the firm.

Infosys said revenues from the US and new markets improved marginally, but growth from Europe declined.

"Our clients tell us the business scenario could improve by mid-2010," Gopalakrishnan told television channel CNBC-TV 18.

"This is why we are cautious at this stage, as uncertainty persists," he said.

Leading research firm Gartner, in an industry forecast, said global IT spending could fall by six percent in 2009, to 3.2 trillion dollars, due to the .

"The global visibility scenario continues to be fuzzy for the top Indian outsourcing firms. We are underweight on the stock, as pressures on margins continue," said Sonam Udasi, vice president (research), BRICS Securities.

During the quarter, Infosys's Nandan Nilekani said he would step down as co-chairman of the firm, after accepting a government role overseeing the development of a national identity card scheme.

This year, Time magazine placed Nilekani in the Time 100 list of 'World's most influential people'.

(c) 2009 AFP

Explore further: Clooney slams skittish Hollywood after Sony hack

add to favorites email to friend print save as pdf

Related Stories

India's Infosys posts profit dip on slowdown

Apr 15, 2009

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.

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.

HP profits lower, to cut nearly 6,400 workers

May 19, 2009

US computer giant Hewlett-Packard reported a 17-percent fall in quarterly net profit on Tuesday and said it plans to cut two percent of its workforce, or nearly 6,400 workers, over the next year.

Taiwan's HTC earnings edge down in Q2

Jul 06, 2009

HTC Corp, Taiwan's leading smartphone maker, said Monday its net profit in the second quarter was down almost two percent from a year earlier.

Lenovo reports losses as sales plummet (Update)

May 21, 2009

China's Lenovo, the world's fourth largest maker of personal computers, Thursday reported a net loss of 226.4 million US dollars in the 2008-09 fiscal year citing structural changes and weak sales.

Recommended for you

2012 movie massacre hung over 'Interview' decision

2 hours ago

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

9 hours ago

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."

Atos shares soar after Xerox acquisition

11 hours ago

Shares in French tech firm Atos soared nearly five percent on Friday as traders cheered the news it had bought the IT wing of Xerox for more than $1 billion.

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.