Infosys Growing Less than Industry Average

Infosys lowers guidance for fiscal 2013

Infosys projected a lower guidance of 15 percent growth year-on-year (YoY) for the new fiscal 2012-13 (FY 2013) on signs of slow recovery in global markets. Sequential decline in net profit and revenue during fourth quarter (January-March) of fiscal 2011-12 also made the global software major peg its revenue for fiscal 2013 at 38,784 crore, a modest 15 percent increase YoY as against 23 percent YoY growth at 33,734 crore it posted in fiscal 2012.

"The year ahead looks challenging for the IT services industry, with slow recovery in global markets," Infosys chief executive S.D. Shibulal said in a statement after the company declared financial results for the fourth quarter (Q4) under review. For the first quarter (April-June) of the new fiscal, the company, however, projected 21 percent YoY growth to 9,056 crore in rupee terms.

Under the International Financial Reporting Standards (IFRS), revenue for the first quarter (Q1) is expected to be $1.8 billion, up 6.6 percent YoY and $7.6 billion for the whole fiscal (FY 2013), projecting an increase of nine percent YoY. In a regulatory filing earlier, the company reported 2,316 crore) net profit for the fourth quarter (Q4), registering 27.4 percent YoY growth, but 2.4 percent lower sequentially from 2,372 crore in the previous/third quarter (October-December) in rupee terms.

Similarly, consolidated revenue for the quarter under review (Q4) grew 22.1 percent YoY to 8,852 crore but declined 4.8 percent sequentially from 9,298 crore in third quarter. Under IFRS, net income grew 15.2 percent YoY to $463 million and consolidated revenue to $1.77 billion, up 10.5 percent YoY for the fourth/last quarter of FY 2012.