Processing .....please wait.. 
The article has been forwarded.... 
Infosys ups annual guidance, beats forecast in Q2
Thursday, 11 October 2007, 19:30 IST
Bangalore: Infosys Technologies Thursday revised its annual revenue guidance upwards for this fiscal (2007-08) by two-three percent from the lower guidance it gave at the beginning of the second quarter (July-Sep) despite an appreciating rupee and growing competition in billing rates.
With a growth of 19 percent year-on-year (YoY) or 
41 billion in the second quarter (Q2) under the Indian GAAP (generally accepted accounting principles), the IT bellwether was able to beat its own conservative forecast of 16 percent (40 billion) YoY growth projected July 11.
Under the US GAAP, the consolidated revenue has crossed the $1-billion mark for the first time to $1.02 billion as against the projected $984 million, registering YoY growth of 37 percent over $746 million posted in the same period of last fiscal (FY 2006-07).
"A sequential growth of nine-ten percent in the second quarter, stable pricing with an upward bias and better utilisation rates have made us revise the annual revenue guidance for FY 2008 to 166-167 billion under the Indian GAAP and $4.17 billion in the US GAAP, projecting YoY growth of 20 percent and 35 percent respectively," Infosys CFO V. Balakrishnan told IANS here.
The revised annual guidance of 166-167 billion is 3-4 billion more than the guidance of 162-164 billion the company gave at the beginning of the second quarter in July, but still less than the initial guidance of 170-173 billion or 25 percent YoY growth, projected at the beginning of the first quarter of FY 2008 in April.
On the profit front, the net income for the quarter (Q2) grew by 18.4 percent to 11 billion from 9.3 billion in the same period a year ago under the Indian GAAP and by 36 percent under the US GAAP to $271 million from $199 million a year ago.
"Our operating margins improved during the quarter despite the rupee appreciating marginally by 240 basis points. To mitigate the impact of a rising rupee, we are proactively hedging our currency exposure. Till the end of September, we have hedged $1.4 billion," Balakrishnan pointed out.
During the quarter under review (July-Sep), the rupee appreciated by 1.08 to 39.50 to one US dollar from 40.58 during the previous quarter (April-June). In March 2007, the exchange rate had been 43.10 per dollar.
Earnings per share (EPS) increased to 19.26 in the second quarter from 16.75 for the same period a year ago, registering YoY growth of 15 percent under the Indian GAAP.
In the light of healthy and steady growth during the first half (April-Sep) of this fiscal (FY 2008), the company has declared an interim dividend of 6 per share or 120 percent on par value of 5 per share, as compared to 5 (100 percent on par) for the same period of last fiscal (FY 2007).
"We have achieved yet another milestone by crossing one-billion dollar in revenues this quarter for the first time. In an increasingly flat world, our unique business model combined with our value proposition continues to help our clients grow profitably," Infosys CEO and managing director S. Gopalakrishnan said in a statement.
The company and its subsidiaries added 48 new clients during the last three months, taking the total number of active clients to 520 by Sep as against 509 in the previous (first) quarter of this fiscal and 476 at the end of Sep last.
"Our continued focus on consulting and business solutions has augmented our capability to serve clients in a competitive marketplace. Though pricing remained stable with an upward bias, we have seen billing rates go up by 1.9 percent this quarter," chief operating officer (COO) S.D. Shibulal noted.
For the third quarter (Oct-Dec), the company has estimated a consolidated income of 42 billion, projecting YoY growth of 16 percent under the Indian GAAP and $1.07 billion or 31 percent YoY growth under the US GAAP.
The EPS for Q3 is expected to be 20.11, projecting YoY growth of 14 percent under the Indian GAAP.
The company's cash and cash equivalents, including investments in liquid mutual funds, have shot up to 73.19 billion from 43.27 billion in the same period a year ago. Similarly, the operating cash flow was higher at 11.4 billion compared to 9.6 billion in the corresponding period of last fiscal.
On the hiring front, the company made a gross addition of 8,543 employees. With attrition climbing up to 14.2 percent from 13.7 percent in the previous quarter and 12.9 percent a year ago, a whopping 4,013 employees left the company during the second quarter of this fiscal. As a result, the net addition was 4,530, taking the total headcount to 80,501 by Sep 30.
Source: IANS
41 billion in the second quarter (Q2) under the Indian GAAP (generally accepted accounting principles), the IT bellwether was able to beat its own conservative forecast of 16 percent (40 billion) YoY growth projected July 11.
Under the US GAAP, the consolidated revenue has crossed the $1-billion mark for the first time to $1.02 billion as against the projected $984 million, registering YoY growth of 37 percent over $746 million posted in the same period of last fiscal (FY 2006-07).
"A sequential growth of nine-ten percent in the second quarter, stable pricing with an upward bias and better utilisation rates have made us revise the annual revenue guidance for FY 2008 to 166-167 billion under the Indian GAAP and $4.17 billion in the US GAAP, projecting YoY growth of 20 percent and 35 percent respectively," Infosys CFO V. Balakrishnan told IANS here.
The revised annual guidance of 166-167 billion is 3-4 billion more than the guidance of 162-164 billion the company gave at the beginning of the second quarter in July, but still less than the initial guidance of 170-173 billion or 25 percent YoY growth, projected at the beginning of the first quarter of FY 2008 in April.
On the profit front, the net income for the quarter (Q2) grew by 18.4 percent to 11 billion from 9.3 billion in the same period a year ago under the Indian GAAP and by 36 percent under the US GAAP to $271 million from $199 million a year ago.
"Our operating margins improved during the quarter despite the rupee appreciating marginally by 240 basis points. To mitigate the impact of a rising rupee, we are proactively hedging our currency exposure. Till the end of September, we have hedged $1.4 billion," Balakrishnan pointed out.
During the quarter under review (July-Sep), the rupee appreciated by 1.08 to 39.50 to one US dollar from 40.58 during the previous quarter (April-June). In March 2007, the exchange rate had been 43.10 per dollar.
Earnings per share (EPS) increased to 19.26 in the second quarter from 16.75 for the same period a year ago, registering YoY growth of 15 percent under the Indian GAAP.
In the light of healthy and steady growth during the first half (April-Sep) of this fiscal (FY 2008), the company has declared an interim dividend of 6 per share or 120 percent on par value of 5 per share, as compared to 5 (100 percent on par) for the same period of last fiscal (FY 2007).
"We have achieved yet another milestone by crossing one-billion dollar in revenues this quarter for the first time. In an increasingly flat world, our unique business model combined with our value proposition continues to help our clients grow profitably," Infosys CEO and managing director S. Gopalakrishnan said in a statement.
The company and its subsidiaries added 48 new clients during the last three months, taking the total number of active clients to 520 by Sep as against 509 in the previous (first) quarter of this fiscal and 476 at the end of Sep last.
"Our continued focus on consulting and business solutions has augmented our capability to serve clients in a competitive marketplace. Though pricing remained stable with an upward bias, we have seen billing rates go up by 1.9 percent this quarter," chief operating officer (COO) S.D. Shibulal noted.
For the third quarter (Oct-Dec), the company has estimated a consolidated income of 42 billion, projecting YoY growth of 16 percent under the Indian GAAP and $1.07 billion or 31 percent YoY growth under the US GAAP.
The EPS for Q3 is expected to be 20.11, projecting YoY growth of 14 percent under the Indian GAAP.
The company's cash and cash equivalents, including investments in liquid mutual funds, have shot up to 73.19 billion from 43.27 billion in the same period a year ago. Similarly, the operating cash flow was higher at 11.4 billion compared to 9.6 billion in the corresponding period of last fiscal.
On the hiring front, the company made a gross addition of 8,543 employees. With attrition climbing up to 14.2 percent from 13.7 percent in the previous quarter and 12.9 percent a year ago, a whopping 4,013 employees left the company during the second quarter of this fiscal. As a result, the net addition was 4,530, taking the total headcount to 80,501 by Sep 30.
Source: IANS