Infosys sees stronger second half: BG Srinivas

Posted By: Religare
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Infosys sees stronger second half: BG Srinivas
The country's second largest software firm, Infosys technologies expects better results in the coming two quarters following its below expectations showing in the first quarter of 2011-12. The firm is banking on the third and fourth quarter to deliver strong growth on the back of strong demand for its services from sectors such as retail, life sciences and energy.

The company reported a decline in its net profit by 5.4% at Rs 1,722 crore in Q1 2011-12 from Rs 1,818 crore in the January-March period of 2010-11. The net profit rose by 15.72% in the quarter ended 30 June, 2011-12 from Rs 1,488 crore in Q1 2010-11.

The firm posted a growth of 3.2% in Q1,2011-12 in its consolidate revenue to Rs 7,485 crore from Rs 7,250 crore in the previous quarter, while the revenue growth was 21% in the reported quarter to Rs 7,485 crore, compared with Rs 6,198 crore in the same quarter last year. However, the revenue was 1.8% more than the company's estimation of Rs 7,347 crore.

Its earnings per share (EPS) slipped by 5.3% from Rs 31.82 in the previous quarter to Rs 30.14 in the reported quarter. The company estimates its EPS to be in the range of Rs. 29.64 and Rs. 30.15 for the second quarter of 2011-12, which would be 1.7% below the EPS in Q2, 2010-11. However, it expects the EPS to grow by 8%, year-on-year to Rs 129 for fiscal 2011-12.

According to the new accounting system, International Regulatory System (IFRS), the company posted an 18%, year-on-year growth in its net profit in Q1, 2011-12. While its income increased by 23%, year-on-year to US $1.7 billion in the reported quarter.

The company expects its revenue to grow at 16.5% from last year to Rs 32,311 crore for 2011-12. In dollar terms; it projects the revenue for 2011-12 to post a growth of 19%, year-on-year to $7.2 billion. The software firm expects its Q2, 2011-12 revenue to post a year-on -year growth of 12% at Rs 7,755 crore ,while, as per the IRFS, the Q2 2011-12 revenue is estimated to grow by 16.6%, year-on-year to $1.74 billion.

The revenue from the top five clients of Infosys including Goldman Sachs, BT Group and BP Plc rose by 8.2% during the quarter. The firm also added 26 fresh clients to its portfolio during the reported quarter, against 38 acquired in Q1 2010-11. It has a total of 628 clients, at present.

Its liquid investments as of June 30, 2011-12 were Rs 16,969 crore compared to Rs 16,005 crore in the year ago period.

The software firm increased its headcount by 2,740 to 1,33,560 employees as on June 30, 2011-12. It plans to hire 12,000 employees in Q2 2011-12.

The company insists that it remains deeply committed its clients' needs and will enhance quality and efficiency in operations in a bid to increase its top-line and bottom-line growth. The firm aims to be a leader in the global consulting, outsourcing and technology space worldwide in the near future, and add many more high profile clients to its existing list.

The company's stock plunged by 4.27% at Rs 2,794.25 on the BSE on Tuesday as the results disappointed the market.

Story first published: Wednesday, July 13, 2011, 9:30 [IST]
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