Infosys results near expectations. Profits rise 15.72%. Consolidated profit at Rs 1,722

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Infosys profits rise 15.72%, Consolidated profit at Rs 1,722
Infosys: Quotes, News
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Infosys, India's second biggest software services exporter declared its Q1 result for the Fiscal Year 2012. It managed a 15.72% profit, missing expectations by a small margin, as a surge in wages had offset strong demand from western clients.

Meanwhile the company reported its consolidated net profit had risen from Rs 1490 crore in FY11 to Rs 1,722 crore ($387 million).

A poll of brokerages had pitched the forecast of profit at Rs 1,729 crore for the It software companies.

Infosys has a strong client base with companies such as Goldman Sachs, BT Group and BP among its main clients.

India's IT services is considered to be worth $60 billion, is enjoying a strong growth on the back of improved pricing for its services. Also there has been an increase in outsourcing by companies in order to cut costs and improve efficiency amid growing economic uncertainty.

Earnings before interest and tax for the Q1FY12 was Rs 1,952 crore; it was Rs 2,102 crore in previous quarter. Where as margins (EBIT) stood at 26.1% as against expectation of 27.1%. Other income also increased to Rs 443 crore, earlier this was at Rs 415 crore.

Volume growth in the June quarter was 4%. North America contributes 64.2% of total revenues in Q1 as against 63.7% in previous quarter.

Infosys expects earnings per share (EPS) to be at Rs 128.20-130 and revenues to grow to Rs 31,777-32,311 crore for the financial year 2011-12.

OneIndia Money

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