Infosys survives slowdown, but braces to stay afloat (Second Lead)

April 15th, 2009 - 3:14 pm ICT by IANS  

Bangalore, April 15 (IANS) India’s second largest IT bellwether Infosys Technologies, which survived the impact of slowdown in fiscal 2009, is bracing to stay afloat in a grim fiscal 2010.
The global software major managed to meet the consolidated revenue guidance by posting Rs.21,693 crore (Rs.216.93 billion) for fiscal 2008-09, a robust growth of 30 percent year-on-year (YoY) under the Indian accounting standard.

However, its forecast for fiscal 2009-10 at Rs.22,000-22,900 crore, projecting a 1.5-5.7 percent YoY growth, points to the end of double-digit growth.

“Many of our clients are impacted by the financial crisis and are looking to us to help them reduce their expenses and optimise their businesses,” Infosys chief executive S. Gopalakrishnan said in a statement here Wednesday.

In dollar terms, consolidated revenue is expected to decline to around $4.35-4.52 billion in fiscal 2010 from $4.7 billion last year due to steady weakening of the Indian rupee in the currency market and pricing pressure under the International Financial Reporting Standard (IFRS).

Similarly, for the first quarter (April-June) this fiscal, though revenue forecast under the Indian accounting standard at Rs.5,379-5,480 crore projects a modest growth of 11-13 percent YoY, in dollar terms, revenues could decline 8.2-6.5 percent YoY to $1.06-1.08 billion)

For the fourth quarter of 2008-09, the company posted consolidated net profit of Rs.1,613 crore (Rs.16.13 billion), registering 29 percent YoY growth, but lower by 1.7 percent sequentially as per the Indian accounting standard.

Similarly, consolidated income for the quarter was Rs.5,635 crore (Rs.56.35 billion), posting 24 percent YoY growth but 2.6 percent lower sequentially.

Under IFRS, consolidated net income rose to $321 million, a marginal growth of 2.6 percent YoY, while gross income fell 1.8 percent to $1.12 billion.

Consolidated net profit for 2008-09 stood at Rs.5,988 crore (Rs.59.88 billion), a 28.5 percent YoY growth.

Similarly, consolidated income for the fiscal was Rs.21,693 crore (Rs.216.93 billion), a 30 percent YoY growth under Indian accounting standard.

Under IFRS, consolidated net income rose to $1.28 billion, a modest growth of 10 percent YoY and consolidated gross income to $4.7 billion, a growth of 12 percent YoY.

“We improved our operating margins during fiscal 2009 despite a very difficult global economic environment and highly volatile currency market,” chief financial officer V. Balakrishnan said.

The blue-chip company recommended a final dividend of Rs.13.50 per share, which is 270 percent on par value of Rs.5 per share, for fiscal 20008-9.

The company made a provision of Rs.7.73 billion (Rs.773 crore) for the dividend payout that will be made after the shareholders’ approval at its annual general meeting in June 2009.

The company has cash reserves of $2 billion at the end of March 31, 2009.

An interim dividend of Rs.10 per share or 200 percent on par value of Rs.5 per share was declared in October 2008 for the first half of 2008-09.

Infosys and its subsidiaries added 37 clients during the fourth quarter.

It also made a gross addition of 4,935 employees and net addition of 1,772 during the fourth quarter, and a gross addition of 28,231 and a net addition of 13,663 for the entire fiscal.

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