Infosys beats guidance, revises outlook again

October 12th, 2011 - 2:03 pm ICT by IANS  

Bangalore, Oct 12 (IANS) Buoyed by robust performance in the second quarter (July-September) and beating its guidance, India’s second largest IT bellwether Wednesday revised revenue outlook for this fiscal (2011-12) once again projecting six percent higher growth year-on-year (YoY).

As a result, the global software major revised its outlook for the entire fiscal to Rs.33,795 crore, projecting 23 percent YoY growth as against Rs.32,044 crore given in July with 17 percent YoY growth as per the Indian accounting standards.

This is the second time the company revised its fiscal guidance in six months upwards by Rs.1,796 crore ($367 million) to Rs.33,795 crore from Rs.31,999 crore given April 15 with 16.4 percent YoY growth.

“The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments,” Infosys Chief Executive S.D. Shibulal said in a statement here.

As a result, the company’s blue chip scrip gained 5.4 percent on the Bombay Stock Exchange (BSE) in the first three hours of trading with its Rs.5 per share zooming to Rs.2,645 from opening rate of Rs.2,601 and Tuesday’s closing rate of Rs.2,509.

Posting net profit of Rs.1,906 crore for the quarter under review (Q2), which is up 10 percent YoY and 11 percent sequentially, the company’s ’s consolidated revenue grew 17 percent YoY to Rs.8,099 crore and eight percent sequentially.

The global software major July 12 projected revenue of Rs.7,755 crore with 12 percent YoY growth for the second quarter.

Similarly, earnings per share (EPS) at Rs.33.36 is 10 percent higher YoY and 11 percent sequentially.

Under the International Financial Regulatory System (IFRS), net income at $411 million is 10 percent up YoY and seven percent sequentially, while revenue grew 17 percent YoY to $1.75 billion and 4.5 percent sequentially.

Earnings per share (EPS) for fiscal is expected to be Rs.144, projecting 21 percent YoY growth and nine percent higher than previous guidance. For this quarter (Q3), EPS is expected to be Rs.39, up 25 percent YoY.

For the third quarter (Oct-Dec) of this fiscal, consolidated revenue is expected to be around Rs.8,919 crore, projecting 26 percent YoY growth.

Under the International Financial Regulatory System (IFRS), revenue for FY 2012 is expected to be $7.14 billion, projecting 18 percent YoY growth, same as earlier.

For the third quarter (Q3) consolidated revenue under IFRS is set to be $1.8 billion, which will be 15 percent YoY growth.

“Our strategic initiatives and organisation structure will enable us to build long-term partnerships with our clients and help them drive their business objectives,” Shibulal, who took over the top post in August, said.

The company added 45 clients during the quarter as against 26 in the previous quarter (April-June) and 27 year ago, taking the total number of active clients to 647 from 628 quarter ago and 592 year ago.

For the first time in many quarters, the company bagged a $300-million client during the second quarter. Repeat business accounted for 98.5 percent of the revenue, with 35 percent of revenue coming from its flagship BFSI (banking, financial services and insurance) vertical, followed by retail and life sciences (23 percent) and energy utilities, communication & services (22 percent).

The company’s cash reserves, including investments increased to Rs.18,601 crore ($3.8 billion) from Rs.17,388 crore ($3.6 billion) year ago at the current dollar rate of Rs.49.

“The global currency market continues to remain highly volatile on the back of weak economic recovery in most of the developed markets,” Chief Financial Officer V. Balakrishnan said.

The company added (net) 8,262 people during the quarter (Q2) as against 2,740 in the first quarter and 7,646 year ago, taking the total number of employees as on Sept 30 to 141,822 from 133,560 as on June 30 and 122,468 year ago.

“Our continued focus on adding measurable value to clients, coupled with our flexible financial model will enable us to make the right investments without compromising on high-quality growth,” Balakrishnan added.

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