Infosys Q1 net rises 21%, raises FY09 forecastJuly 11th, 2008 - 8:26 pm ICT by ANI
Bangalore, July 11 (ANI): Infosys Technologies Limited beat expectations with a 21 per cent rise in quarterly profit thanks to a weaker rupee, and raised its full year guidance on hopes for a revival in outsourcing demand.
The number two information technology services company forecast revenue for the year to March 2009 would grow 27.5-29.5 per cent, in rupee terms, up from April’’s forecast of 19.2-21.1 per cent.
Infosys, which develops applications, designs supply chains and offers back-office services, said on Friday that net profit rose to 13.02 billion rupees in the first quarter ended June from 10.79 billion rupees reported a year earlier.
Although the economic environment continues to be uncertain and could impact IT spending in the short term, we see opportunities for growth. Growth primarily by the need to look at the global delivery model and to look at how can they bring in more efficiency how can they work with companies like Infosys, said S. Gopalakrishnan, Chief Executive Officer (CEO) and Managing Director of Infosys.
Pricing had remained stable in the June quarter, Infosys said, but margins were impacted by wage increases and visa costs. The currency market was expected to remain volatile in the short term, it said.
Nasdaq-listed Infosys is the first to report quarterly earnings among Indian IT companies, which had annual revenues of around 52 billion dollars in 2007-08.
A large pool of English-speaking graduates and comparatively cheaper wages had helped Indian firms ride an outsourcing boom for years, but the growth slowed last year when Wall Street banks made huge write-downs related to the sub prime crisis and as the U.S. economy lurched towards recession.
Although Indian outsourcing firms are expanding to Europe, Asia and the Middle East to lower their dependence on the United States, the country still accounts for half of their sales.
Shares in Infosys, which is valued by the market at 23 billion dollars, had risen 21 per cent in the June quarter, outperforming a gain of 13 per cent in the sector index and a 14 per cent drop in the main Mumbai index. (ANI)
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