Infosys Q1 net rises 33% at Rs 2,289 crore

Country's second largest software firm Infosys today reported a 32.92 per cent jump in consolidated net profit to Rs 2,289 crore (Rs 22.89 billion) for the first quarter ended June 30, 2012.

The company had posted a net profit of Rs 1,722 crore (Rs 17.22 billion) for  the April-June quarter of the previous fiscal (2011-12), Infosys said in a filing to the BSE.

Reacting to the results, the scrip of Infosys tumbled 9.42 per cent to Rs 2,233.95 at the BSE from its previous close since it failed to meet its dollar revenue guidance and also cut its dollar forecast for FY 2013.

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The company's revenues up 28.47 per cent to Rs 9,616 crore (Rs 96.16 billion) in the first quarter from Rs 7,485 crore (Rs 74.85 billion) in the year-ago period. In dollar terms, the company's revenue stood at USD 1,752 million against USD 1,671 million in the same quarter last year, up 4.8 per cent.

Though the company exceeded its revenues forecast in rupee terms, it failed to meet dollar revenue guidance of USD 1,771 million to USD 1,789 million for the quarter.

It had expected its rupee revenues to be in the range of Rs 9,011 crore (Rs 90.11 billion) and Rs 9,100 crore (Rs 91 billion) for April-June 2012.

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In Q1, rupee revenues of software companies are expected to rise marginally on the back of depreciating rupee.

Infosys did not give a revenue guidance for July- September quarter, but revised its annual forecast for FY13 to be atleast Rs 40,364 crore (year-on-year growth of 19.7 per cent) against previous guidance of Rs 38,431 crore (Rs 384.31 billion) -Rs 39,136 crore (Rs 391.36 billion).

However, in dollar terms it has slashed its forecast of revenue to be atleast USD 7.34 billion (a growth of 5 per cent y-o-y) against earlier guidance of USD 7.55 billion-USD 7.69 billion (a growth of 8-10 per cent y-o-y).

This is much lower than Nasscom's growth estimate of 11-14 per cent for the industry in FY 2013.

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"Our focus on Infosys 3.0 and building tommorow's enterprise coupled with disciplined execution will help us deliver high quality growth, despite challenges seen in the global economic situation, resulting in slower IT spends by large corporations," Infosys CEO and Managing Director S D Shibulal said.

As of June 30, 2012, Infosys' cash and cash-equivalents, including investments in available-for-sale financial assets and certificates of deposit and government bonds, stood at Rs 20,596 crore, as against Rs 16,969 crore as of June 30, 2011.

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"Global currency volatility continues to be a big challenge for the industry. We are making the right investments balancing the short-term needs with long-term opportunities," Infosys Member of the Board and Chief Financial Officer V Balakrishnan said.

Infosys, which has Goldman Sachs, BT Group and BP Plc among its clients, added 51 new clients during the quarter.

At the end of June 30, the company had 1,51,151 employees, including 9,236 (gross) and 1,157 (net) new staff inducted during the first quarter.