Infosys Q4 profit below expectation; up 2% at Rs 1818cr

ndia's second largest IT services exporter Infosys Technologies has reported fourth quarter net profit of Rs 1,818 crore, a growth of 2.15% over Rs 1,779.8 crore in previous quarter. Revenues went up 2% to Rs 7,250 crore as against Rs 7,105.6 crore on quarter-on-quarter basis. Numbers were below the market expectations - street was expecting net profit at Rs 1,856 crore and revenues at Rs 7,447 crore. S Gopalakrishnan, CEO and Managing Director expects the demand environment to be normal this year for the industry. “We have created a structure with strong customer driven vertical focus and have enhanced our investment to take advantage of the opportunities we see in the market.” EBIT margins declined at 29% in January-March quarter as against 30.2% in previous quarter. Moshe Katri, MD of Cowen & Co said higher other income has helped Infosys. "Company's dollar revenue was below consensus." Other income of the company increased nearly 65% at Rs 415 crore from Rs 252 crore (QoQ). Earning per share for financial year 2010-11 improved to Rs 119.41 from Rs 109. Net attrition in fourth quarter stood at 3,041 and staff utilisation was 75.2%. Management said there were strong employee additions in fourth quarter. "We will add 45,000 employees in FY12." FY12 Guidance Company expects earning per share in the range of Rs 126.05-128.21 for the financial year 2011-12 - growth of 5.5% to 7.3% - way below analysts expectations. Sanjeev Prasad of Kotak Institutional Equities said EPS guidance has been dissapointing. "We were expecting FY12 EPS guidance at Rs 132-138." "It seems like they have taken a conservative view of the rupee. Earnings will be downgraded for Infosys," Prasad said. In dollar terms, company expects earnings per share at USD 2.83-2.88, a growth of 8-10%. Infosys sees revenue of Rs 31,727-32,270 crore, a growth of 15.4-17.3% and dollar revenue of USD 7.13-7.25 billion, a growth of 18-20%. In a press conference, company's management said revenue was in lower range of guidance. Company sees normal environment for business. "We might see volatility in spending by clients. Currency volatility continues to be a challenge." Q1 Guidance Company expects first quarter FY12 revenues at USD 1643-1659 million, a growth of 21-22.2%. In rupee terms, revenues are expected to be at Rs 7311-7382 crore, a growth of 18-19.1% on quarter-on-quarter basis, says company. Infosys sees earnings per share at Rs 27.59-28.02, with a growth of 5.9-7.5%. Source: www.moneycontrol.com Thanks, Gaurav Agarwal Head Dealer DENIP Consultants Pvt Ltd