Infy reports 25% jump in profit; guidance disappointing
Bangalore: India’s second largest software exporter Infosys on tuesday reported a 25 per cent jump in its consolidated net profit to Rs 2,992 crore for the quarter ended March 31, 2014, helped by large deals and an uptick in client spending.
Unveiling the March quarter numbers, Infosys CEO and Managing Director S D Shibulal, who will retire in January next year, said he is leaving behind a “stronger Infosys”.
Infosys had reported a net profit of Rs 2,394 crore in the same quarter last fiscal.
Revenues for the reported quarter were up 23.2 per cent to Rs 12,875 crore from Rs 10,454 crore in the year-ago period.
Revenue forecast in dollar terms is in the range of 7-9 per cent for 2014-15 fiscal, which is way below industry body Nasscom’s projection of 13-15 per cent.
In rupee terms, the firm gave a revenue guidance of 5.6- 7.6 per cent for the current financial year.
Infosys shares gained nearly 1 per cent on BSE. “Infosys results were good and better-than-expectations. But revenue guidance was slightly below expectations,” said Ashika Stock Brokers Research Head Paras Bothra.
“If I look at the period, I have made a number of choices and I think they were all the right choices,” Shibulal told reporters .
In response to a question whether the company is less optimistic or more optimistic about the year ahead, Shibulal said: “All the factors have been factored into the guidance and our guidance is the statement of fact. We have factored in all the information that we have.”
“What are the information we have…. we know the momentum of Q3 and Q4, we know the Q4 numbers, we know that our pipeline is marginally better…..we have factored all these things and have come out with a guidance and our guidance is a statement of fact as it stands today.”