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Infosys Q1FY09 net profit up 17.2 percent
By siliconindia
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Friday, 10 July 2009, 16:42 IST
1,527 crore ($314 million) in April-June, its fiscal first quarter, compared to 1,302 crore ($272 million) a year ago.
Total Income has increased by close to 15.5 percent from 4,971 crore for the quarter ended June 30, 2008 to 5,741 crore for the quarter ended June 30, 2009. On a sequential basis, quarter on quarter basis, as the company as guided has posted a 5.3 percent drop in net profit while the topline was down by three percent.
The meltdown has finally caught up with IT bellwether Infosys Technologies, forcing it to marginally lower its quarterly and annual revenue guidance for the first time even as it managed to stay afloat in the first quarter this fiscal.
Infosys saw its revenues decline 2.9 percent to 54.72 billion (5,472 crore) in the first quarter, from 56.35 billion (5,635 crore) in the fourth quarter last fiscal.
Based on this, Infosys has projected a year-on-year (YoY) decline of 1.9-0.1 percent in the second quarter to 53.18-54.13 billion (5,318-5,413 crore), as per the Indian accounting standard.
"We believe that in the short-term, the global economic environment will continue to be challenging. We are working closely with our clients to help them navigate the downturn," Infosys chief executive S. Gopalakrishnan said in a statement Friday here.
With currency volatility impacting operations, the software major has also forecast that its consolidated revenue for the entire fiscal would decline 1.3 percent YoY to 214.16 billion (21,416 crore) or grow fractionally by 0.3 percent YoY to 217.47 billion (21,747 crore).
Its earlier projection had pegged the annual revenue at 220.66-229.28 billion, forecasting a 1.7-5.7 percent YoY growth..
"The global currency markets continue to be volatile. During the quarter, the rupee appreciated against the dollar from 50.72 to 47.91 on average," said Infosys chief financial officer V. Balakrishnan.
In dollar terms too, consolidated revenue is expected to be in the range of $1.11-1.13 billion) in the second quarter, projecting a decline of 8.7-7.1 percent YoY, as per the International Financial Reporting System (IFRS).
Similarly, for the whole fiscal, consolidated revenue is projected to decline 4.6-3.1 percent YoY to $4.45-4.52 billion, as per the IFRS.
"We continue to invest in the future to take advantage of the growth opportunities in the medium and long-term," Gopalakrishnan said.
On annualised basis, net profit for the first quarter grew by 17.3 percent to 15.27 billion (1,527 crore) from 13.02 billion (1,302 crore) a year ago, while revenue increased 12.7 percent to 54.72 billion (5,472 crore) from 48.54 billion (4,854 crore) in the same period year ago, as per the Indian accounting standard.
"We continue to focus on margins, while making the right investments to accelerate growth," Balakrishnan said.
In dollar terms, net income grew marginally by 1.6 percent to $313 million from $308 million year ago, while revenue declined 2.9 percent to $1.12 billion from $1.15 billion in the same quarter year ago, as per the IFRS.
Unfazed by the downturn, Infosys chief operating officer S.D. Shibulal said the company was winning large deals and had benefited from vendor consolidation with certain clients.
But due to lower technology spending in light of downturn worldwide, client acquistion also declined to 27 as against 37 in the previous quarter and 49 in the year-ago period.
As a result, the company has 569 active clients at the end of first quarter as against 579 in the last quarter and 567 year ago.
