Infy gives strong guidance for FY11, Q4 net down on firm Re

Bangalore, Apr 13 (PTI) Infosys Technologies Tuesday
posted a marginal 0.9 per cent decline in its fourth quarter
profit as a firmer rupee countered the rising demand for
outsourcing, but the Indian IT major gave an impressive
revenue growth guidance of 16-18 per cent for the current
fiscal.
For the fourth quarter ended March 31, 2010, Infosys
posted a net profit of Rs 1,600 crore, 0.9 per cent lower than
the profit in the same period a year ago.
For the period under revenue, the revenue was up 5.5 per
cent year-on-year at Rs 5,944 crore.
Infosys shares on the Bombay Stock Exchange gained 3.69
per cent at Rs 2,782 at close.
"The currency volatility continues to be a concern for the
industry. We, however, have an active hedging programme to
minimise its impact on our margins," company CFO V
Balakrishnan said.
The Board of Directors has recommended a final dividend of
Rs 15 per share for fiscal 2010.
"We maintained our margins in one of the toughest years
for the industry while our cash and cash equivalents reached
dollar 3.5 billion", said Balakrishnan.
Analysts said a strong rupee may keep earnings growth
muted for outsourcers like Infosys. Infosys expects its
profit margins to take a hit this year.
The software major, which counts Goldman Sachs, BT Group
and BP Plc, among its clients said its dollar revenue is to
rise 16-18 per cent in year-on-year 2010-11.
For the fiscal ending March 2011, the company expects its
consolidated revenues in the range USD 5.57 billion-USD 5.67
billion, a growth of 16-18 per cent.
Fiscal 2011 revenues are expected to grow by 9-11 per
cent in rupee terms, the company said.
For the quarter (Q1) ending June 30, 2010, the company
said its consolidated revenues are expected to be in the range
USD 1,330 million-USD 1,340 million, which translates into a
growth rate of 18.5-19.4 per cent on y-o-y basis.
"Though the economic environment continues to be
challenging, businesses are investing growth for building a
better future.
"This year IT budgets are going to be flat or slightly up.
Decisions are being made. Our guidance is based on data
collected from clients. We have asked clients how and
when they are investing. Our model has proved reasonably
good," S Gopalakrishnan, CEO and MD told reporters here today.
"We have done very well to what we thought we would", he
said
In the fourth quarter, Infosys added 47 new clients, the
highest number in the recent times.
Infosys and its subsidiaries saw a gross addition of 9,313
employees and a net addition of 3,914 employees for the
quarter. PTI