MYSORE, INDIA: Infosys Technologies Ltd, India's No. 2 software outsourcer, on Tuesday raised full-year forecast for consolidated revenue to March 2010. The IT giant revised its revenue guidance for the entire fiscal (2009-10) upwards to Rs.22,500 crore ($5 billion), a growth of 3.7 per cent over the last fiscal, as per the Indian accounting standard.
For the quarter ending March 31, 2010, the revenue is expected to be in the range of Rs. 5,675 crore and Rs. 5,721 crore, which projects a Y-o-Y growth of 0.7 per cent to 1.5 per cent. Earnings per share is expected to be in the range of Rs. 25.62 and Rs.25.83; a Y-o-Y decline of 9.0 per cent to 8.3 per cent.
For the financial year ending March 31, 2010, the income is expected to be in the range of Rs. 22,473 crore and Rs. 22,519 crore; a Y-o-Y growth of 3.6 per cent to 3.8 per cent. Earnings per share is expected to be in the range of Rs. 106.85 and Rs. 107.06; a YoY growth of 2.2 per cent to 2.4 per cent.
“Global economic recovery seems to be led by the U.S. and the Financial Services,” said Kris Gopalakrishnan. “Even though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery.”
S.D. Shibulal, chief operating officer, said the contribution to Infosys' revenues from its top ten clients grew by 12.2 per cent during the quarter. “Our clients are taking decisions much faster. Our focus on New Engagement Models (NEMs) was strengthened by the launch of Flypp, our latest technology platform for telecom service providers,” he added.
Meanwhile, the Infosys Board has appointed Prof. Marti G. Subrahmanyam as the lead independent director effective January 12, 2010. Prof. Subrahmanyam will be taking over the role from Deepak M. Satwalekar, who will continue to serve as an independent director and chairman of the Audit Committee.
“As the Lead Independent Director, Deepak played a vital role in enhancing our corporate governance function, already a torchbearer in the industry,” said N.R. Narayana Murthy, chairman of the board and chief mentor. “His dedication, insight and urge for excellence have contributed immensely in taking our Board functions to the next level. We will cherish his contributions which have been invaluable,” Murthy added.
Rev growth could absorb wage cost
Meanwhile, a senior company official said that Infosys' revenue growth for the December quarter has been able to absorb a rise in wage cost comfortably.
"Last quarter was the first quarter after our wage hikes. Our revenue growth has been able to absorb that cost increase comfortably," Subhash Dhar, senior vice-president and head of global sales and marketing, told the Reuters Trading India chat-room.
(With inputs from Reuters)