BANGALORE: Infosys Technologies Ltd., said on Wednesday its April-June net
profit rose 3.1 per cent from the preceding quarter, slightly above market
expectations. Topline growth substantially exceeded expectations.
The software bellwether's first-quarter net profit rose to Rs 2.17 billion
($44.5 million) or Rs 32.46 per share, from Rs 1.90 billion or 28.59 a share in
the previous quarter. Total income rose 24.8 per cent to Rs 7.65 billion. A
Reuters poll of 10 brokerages released on Tuesday estimated a median net profit
of Rs 2.13 billion on net sales of Rs 6.99 billion. Bangalore-based Infosys had
forecast first-quarter software sales between Rs 6.84-6.94 billion and earnings
per share of Rs 31 to 32.
The Nasdaq-listed company, the first major software firm to report results,
provides software services to about 300 clients including Cisco, ING Group and
Boeing. Its results came before the start of trading on the Bombay Stock
Exchange (BSE) on Wednesday. After the first 17 minutes of trading, the shares
were up 2.2 per cent at 3,467.00.
At Tuesday's closing level of Rs 3,391.85, Infosys' shares had fallen 16.7
per cent in the past six months, compared with a 8.2 per cent drop in the BSE's
information technology index.
Infosys says travel delays impacting outlook
Infosys Technologies chief executive officer Nandan Nilekani said on
Wednesday the business outlook remained cautious due to delays on account of
travel restrictions. "We continue to remain cautious due to delays in
client and prospect visits arising from adverse travel advisories and due to
challenging global business environment," Nilekani said in a statement.
But he also added, "Revenue growth during the quarter has been
robust." He made these comments while announcing the April-June results of
the company.
Infosys reported its net profit rose 14.1 per cent on the year to Rs 2.17
billion in that quarter, on total income that rose 24.8 per cent. Nasdaq
listed-Infosys is India's second biggest firm both in terms of market value and
software exports.
Shares of the company were trading 1.1 per cent higher at Rs 3,428 in early trade at the Bombay Stock Exchange whose main index was down 0.17 per cent.
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