Infosys Q3 net profit up 2.5% at Rs 1780 cr

India's second largest IT services exporter and IT bellwether Infosys Technologies has announced its results for the quarter ended December 2010 (Q3FY11). The company has reported consolidated net profit at Rs 1,780 crore as against Rs 1,737 crore in previous quarter, a growth of 2.48% (based on IFRS - International Financial Reporting Standards).

Operating profit also increased just by 2.34% at Rs 2,147 crore as against Rs 2,098 crore on quarter-on-quarter basis.

Company's consolidated revenues came in at Rs 7,106 crore from Rs 6,947 crore, up just 2.29% on QoQ. Infosys reported revenues at USD 1585 million, a growth of 5.94% (QoQ).

Numbers were below markets' expectations. CNBC-TV18 was expecting net profit at Rs 1,814.69 crore and revenues at Rs 7,200.07 crore.

CEO & MD of Infosys, S Gopalakrishnan said, "The weaker economic outlook in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth.”

Operating profit margin came in flat at 30.2% on quarter-on-quarter basis.

Geographical segment
North America grew by 4.3% sequentially; and 4.2 % in constant currency.
Europe grew by 6.3% sequentially; and 3.7% in constant currency.
Rest of the world grew by 16.1% sequentially; and 9.7% in constant currency.

Industry segment
BFSI grew 8.3% sequentially; and 7.1% in constant currency.
Manufacturing grew by 9.8% sequentially; and 8.6% in constant currency.
Retail grew by 6.6% sequentially; and 5.8% in constant currency.
Telecom declined by 0.8% sequentially; and 3.9% in constant currency.
Others grew by 2% sequentially; and 1.3% in constant currency

Uncertainties related to sustainability of the global economic recovery could create greater currency volatility in the near future, says CFO, V Balakrishnan.

Guidance
Infosys expects revenue at USD 1.60-1.61 billion in fourth quarter of FY11 and EPS at Rs 31.06-31.28

For the financial year 2010-11, company sees revenue at USD 6.04-6.06 billion and EPS at Rs 118.68-118.90 as against earlier guidance of Rs 115-117/share

Company raised FY11 dollar revenue growth guidance to 25.8-26.22% from earlier guidance of 24-25% and rupee revenue growth guidance upped to 20.5-20.84% from 18.5-19.5% earlier.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd