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Infosys ups guidance again on robust topline growth
Thursday, 11 January 2007, 18:30 IST
Bangalore: IT bellwether Infosys Technologies Ltd has once again revised its revenue guidance for the current fiscal (FY 2007) despite a strong rupee appreciation impacting its operating margins during the third quarter.
Revising the guidance upwards for the third time consecutively, the company said in a statement here Friday that the consolidated income for this fiscal is expected to be 
139.19 billion ($3.09 billion), with the year-on-year (YoY) growth at 46.2 percent under the Indian GAAP (generally accepted accounting principles) and 43.6 percent under the US GAAP.
The guidance has been revised marginally from 139 billion projected in October last following robust topline and bottomline growth in the third quarter (October-December) of FY 2007.
Beating its own guidance of 36.3 billion or 43 percent YoY given in October for the quarter under review (Q3), the company's consolidated income has increased to 36.55 billion, registering YoY growth of 44.4 percent and 5.9 percent sequentially under the Indian GAAP.
Net profit has also shot up to 9.83 billion, posting YoY increase 51.5 percent and 5.8 percent sequentially.
Under the US GAAP, the consolidated revenue for the quarter (Q3) is $821 million, up by 46.9 percent YoY and net income is $218 million, up by 52.5 percent.
"Our investments in enriching and synergising our portfolio of services have created compelling value propositions for our clients. As our clients focus on enhancing their competitiveness, they are leveraging our capability to drive their transformation programmes," said Infosys CEO and Managing Director Nandan M. Nilekani.
The company's chief financial officer, V. Balakrishnan, however, admitted the strong rupee appreciation during the quarter had impacted its operating margins by 200 basis points (two percent).
"The rupee appreciated against all major currencies during the quarter, impacting our operating margins by 200 basis points. Despite this, we have maintained our margins," Balakrishnan said in a statement.
The rupee appreciated against the US dollar by a whopping 3.6 percent during the quarter, impacting the company's export earnings, as the North American market alone accounted for 63.2 percent of its total revenues.
For the fourth quarter (January-March) of this fiscal, the company has projected a consolidated income of 37.98 billion, an increase of 44.7 percent YoY under the Indian GAAP and $861 million, a YoY growth of 45.2 percent under the US GAAP.
The earnings per share (EPS) for the entire fiscal is expected to be 66.63, YoY growth of 48 percent and 17.88 for the fourth quarter (Q4), YoY growth of 46.3 percent under the Indian GAAP.
The EPS for the third quarter was 17.64 as against 11.85 in the same period of the last fiscal (FY 2006), registering YoY increase of 48.9 percent.
"We have delivered double-digit growth in dollar terms for the third consecutive quarter during this fiscal. We have seen accelerated growth in Europe, which continues to be a key focus market for us," Infosys chief operating officer and president S. Gopalakrishnan said.
Europe accounted for about 26.8 percent of the total revenue in the quarter.
The company and its subsidiaries have added 43 new clients during Q3, taking the total number of active clients to 488 by Dec 31, as against 454 in the same period a year ago and 476 at the end of the second quarter of this fiscal.
On the hiring front, the company and its subsidiaries have added 3,282 employees (net) during the quarter under review, taking the total number of employees to 69,432 by the end of Dec 31.
Attrition rate has, however, gone up to 13.5 percent during the last 12 months and was higher than 12.9 percent by the end of second quarter (Sep 30) and 10.8 percent by the end of Dec 31, 2005.
The company's cash reserves, including investments in mutual funds, has gone to 47.91 billion from 43.48 billion in the same period a year ago.
The operating cash flows were 9.81 billion during the quarter as against 7.71 billion in the same period a year ago. The capital expenditure incurred during Q3 was 3.43 billion.
Source: IANS
139.19 billion ($3.09 billion), with the year-on-year (YoY) growth at 46.2 percent under the Indian GAAP (generally accepted accounting principles) and 43.6 percent under the US GAAP.
The guidance has been revised marginally from 139 billion projected in October last following robust topline and bottomline growth in the third quarter (October-December) of FY 2007.
Beating its own guidance of 36.3 billion or 43 percent YoY given in October for the quarter under review (Q3), the company's consolidated income has increased to 36.55 billion, registering YoY growth of 44.4 percent and 5.9 percent sequentially under the Indian GAAP.
Net profit has also shot up to 9.83 billion, posting YoY increase 51.5 percent and 5.8 percent sequentially.
Under the US GAAP, the consolidated revenue for the quarter (Q3) is $821 million, up by 46.9 percent YoY and net income is $218 million, up by 52.5 percent.
"Our investments in enriching and synergising our portfolio of services have created compelling value propositions for our clients. As our clients focus on enhancing their competitiveness, they are leveraging our capability to drive their transformation programmes," said Infosys CEO and Managing Director Nandan M. Nilekani.
The company's chief financial officer, V. Balakrishnan, however, admitted the strong rupee appreciation during the quarter had impacted its operating margins by 200 basis points (two percent).
"The rupee appreciated against all major currencies during the quarter, impacting our operating margins by 200 basis points. Despite this, we have maintained our margins," Balakrishnan said in a statement.
The rupee appreciated against the US dollar by a whopping 3.6 percent during the quarter, impacting the company's export earnings, as the North American market alone accounted for 63.2 percent of its total revenues.
For the fourth quarter (January-March) of this fiscal, the company has projected a consolidated income of 37.98 billion, an increase of 44.7 percent YoY under the Indian GAAP and $861 million, a YoY growth of 45.2 percent under the US GAAP.
The earnings per share (EPS) for the entire fiscal is expected to be 66.63, YoY growth of 48 percent and 17.88 for the fourth quarter (Q4), YoY growth of 46.3 percent under the Indian GAAP.
The EPS for the third quarter was 17.64 as against 11.85 in the same period of the last fiscal (FY 2006), registering YoY increase of 48.9 percent.
"We have delivered double-digit growth in dollar terms for the third consecutive quarter during this fiscal. We have seen accelerated growth in Europe, which continues to be a key focus market for us," Infosys chief operating officer and president S. Gopalakrishnan said.
Europe accounted for about 26.8 percent of the total revenue in the quarter.
The company and its subsidiaries have added 43 new clients during Q3, taking the total number of active clients to 488 by Dec 31, as against 454 in the same period a year ago and 476 at the end of the second quarter of this fiscal.
On the hiring front, the company and its subsidiaries have added 3,282 employees (net) during the quarter under review, taking the total number of employees to 69,432 by the end of Dec 31.
Attrition rate has, however, gone up to 13.5 percent during the last 12 months and was higher than 12.9 percent by the end of second quarter (Sep 30) and 10.8 percent by the end of Dec 31, 2005.
The company's cash reserves, including investments in mutual funds, has gone to 47.91 billion from 43.48 billion in the same period a year ago.
The operating cash flows were 9.81 billion during the quarter as against 7.71 billion in the same period a year ago. The capital expenditure incurred during Q3 was 3.43 billion.
Source: IANS