Infosys profit up 5 percent, misses expectations
10/12/2012 4:45:49 AM
(AP) Infosys profit up 5 percent, misses expectations
By ERIKA KINETZ
AP Business Writer
Profit at India's Infosys Technologies rose 4.9 percent in dollar terms for the September quarter, the company said Friday, missing expectations amid tepid demand from global clients struggling with economic uncertainty.
Net income for the September quarter was $431 million. Revenue grew 2.9 percent from a year ago, to $1.78 billion.
The numbers were sharply below expectations. Analysts surveyed by FactSet had forecast net income of $444.6 million on sales of $1.86 billion.
The outsourcing bellwether said revenue for the year ending in March will likely grow 5 percent in dollar terms to at least $7.34 billion. Adjusting for currency fluctuations, its revenue growth forecast is about 0.3 percentage point lower than its July projection.
"Global economic uncertainties continue to face the industry," chief executive S.D. Shibulal said in a statement.
The news sent the stock down over 7 percent in an otherwise flat market in Mumbai.
The company also announced the surprise resignation of its chief financial officer, V. Balakrishnan. Rajiv Bansal, currently the vice president of finance, will replace him on November 1, but Balakrishnan will continue as a member of the board.
Infosys has struggled to maintain growth as it positions itself as a premium player in a highly competitive business. It has been warning investors since January that the global economic slowdown and chaos in Europe would hit earnings.
Still, it managed to grow revenue from Europe by 4.7 percent over the June quarter and from North America by 2.2 percent over the June quarter.
In rupee terms, net profit grew 24.3 percent to 23.7 billion rupees reflecting the rupee's weakness against the dollar. Rupee revenue grew 21.7 percent to 98.6 billion rupees.
Infosys gets nearly two-thirds of its revenue from the United States and over 98 percent of its revenue from outside India.