ID :
175717
Fri, 04/15/2011 - 22:18
Auther :
Shortlink :
https://oananews.org//node/175717
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Infosys Q4 profit up 14 pc; below market expectations
Bangalore, Apr 15 (PTI) India's second largest software
exporter Infosys on Friday reported lower-than-expected 14 per
cent growth in consolidated net profit at Rs 1,818 crore for
the fourth quarter ended March 31, and projected a "normal"
growth environment for the current fiscal.
The fourth quarter (Q4) revenue grew 22 per cent to Rs
7,250 crore from Rs 5,944 crore in the same quarter last year.
The company's net profit would be up 17.1 per cent,
compared to Rs 1,552 crore, after excluding the income for the
sale of Infosys' investment in OnMobile Systems for Rs 48
crore in Q4 of the previous fiscal (2009-10).
Analysts were expecting consolidated net profit in the
range of Rs 1,839.40 crore-Rs 1,899.20 crore for Q4, FY'11.
Infosys, whose shares tumbled by over 9 per cent on the
Bombay Stock exchange after the results were announced, said
that it expected revenues to be in the range of Rs 7,311 crore
to Rs 7,382 crore, growth of 18-19 per cent, in the first
quarter of the current fiscal.
"We expect 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," Infosys CEO and MD S Gopalakrishnan told
reporters here.
Two members of the Board -- T V Mohandas Pai and K Dinesh
-- also said they would relinquish their posts after the
annual general meeting on June 11, 2011 "to make way for new
leadership".
Talking about the forex movement, Infosys Chief Financial
Officer V Balakrishnan said, "Currency volatility continued to
be a challenge."
Income from software services, products and business
process management rose to Rs 7,250 crore in Q4 from Rs 5,944
crore in the year-ago period, up 22 per cent.
For the year ended March 31, the IT bellwether posted a
consolidated net profit of Rs 6,823 crore, up nearly 10 per
cent over the year-ago period.
During the fiscal, income from software services,
products and business process management rose to Rs 27,501
crore from Rs 22,742 crore in the previous fiscal (2009-10).
The Bangalore headquartered firm said it added 34 new
clients during the quarter, often referred to as the soft
quarter.
In terms of employee strength, the company saw a gross
addition of 8,930 employees and net addition of 3,041 for the
quarter which was more than its earlier guidance.
As of March 31, 2011, Infosys and its subsidiaries had
1,30,820 employees. Meanwhile, the Board has declared a final dividend of Rs
20 per share for the fiscal on every share of Rs 5 held.
On margins, Infosys Chief Operating Officer SD Shibulal
said, "Utilisation (of employees) actually came down. That is
why the impact on margins happened."
He added that client spends were mainly focused on
optimising operations, transforming business and in business
innovation.
Shibulal said Infosys would also "re-align the company's
strategic focus to enable clients build their enterprises of
tomorrow."
"We have leaders required to manage the transition",
Gopalakrishnan said on the stepping down decision of Pai and
Dinesh. He pointed out the company has witnessed such
transition in the past as well, when Nandan Nilekani quit and
when N R Narayana Murthy stepped down as Executive Chairman.
The exit of Pai and Dinesh was their "personal decision",
and they were not asked to quit by the company, Gopalakrishnan
said.
The Board of Directors would meet on April 30 to finalise
the company's leadership succession, post Murthy's retirement
as Chairman of the Board in August.
Infosys also announced the appointment of Ravi Venkatesan
as an additional Director of the company with immediate effect
and whose appointment would be placed before the shareholders
for approval during the company's AGM.
"The focus of the company would be to continue to provide
continuity," Gopalakrishnan said.
As on March 31, 2011, cash and cash equivalents,
including investments in available-for-sale financial assets
and certificates of deposits was Rs 16,810 crore against Rs
15,819 crore as on March 31, 2010.
exporter Infosys on Friday reported lower-than-expected 14 per
cent growth in consolidated net profit at Rs 1,818 crore for
the fourth quarter ended March 31, and projected a "normal"
growth environment for the current fiscal.
The fourth quarter (Q4) revenue grew 22 per cent to Rs
7,250 crore from Rs 5,944 crore in the same quarter last year.
The company's net profit would be up 17.1 per cent,
compared to Rs 1,552 crore, after excluding the income for the
sale of Infosys' investment in OnMobile Systems for Rs 48
crore in Q4 of the previous fiscal (2009-10).
Analysts were expecting consolidated net profit in the
range of Rs 1,839.40 crore-Rs 1,899.20 crore for Q4, FY'11.
Infosys, whose shares tumbled by over 9 per cent on the
Bombay Stock exchange after the results were announced, said
that it expected revenues to be in the range of Rs 7,311 crore
to Rs 7,382 crore, growth of 18-19 per cent, in the first
quarter of the current fiscal.
"We expect 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," Infosys CEO and MD S Gopalakrishnan told
reporters here.
Two members of the Board -- T V Mohandas Pai and K Dinesh
-- also said they would relinquish their posts after the
annual general meeting on June 11, 2011 "to make way for new
leadership".
Talking about the forex movement, Infosys Chief Financial
Officer V Balakrishnan said, "Currency volatility continued to
be a challenge."
Income from software services, products and business
process management rose to Rs 7,250 crore in Q4 from Rs 5,944
crore in the year-ago period, up 22 per cent.
For the year ended March 31, the IT bellwether posted a
consolidated net profit of Rs 6,823 crore, up nearly 10 per
cent over the year-ago period.
During the fiscal, income from software services,
products and business process management rose to Rs 27,501
crore from Rs 22,742 crore in the previous fiscal (2009-10).
The Bangalore headquartered firm said it added 34 new
clients during the quarter, often referred to as the soft
quarter.
In terms of employee strength, the company saw a gross
addition of 8,930 employees and net addition of 3,041 for the
quarter which was more than its earlier guidance.
As of March 31, 2011, Infosys and its subsidiaries had
1,30,820 employees. Meanwhile, the Board has declared a final dividend of Rs
20 per share for the fiscal on every share of Rs 5 held.
On margins, Infosys Chief Operating Officer SD Shibulal
said, "Utilisation (of employees) actually came down. That is
why the impact on margins happened."
He added that client spends were mainly focused on
optimising operations, transforming business and in business
innovation.
Shibulal said Infosys would also "re-align the company's
strategic focus to enable clients build their enterprises of
tomorrow."
"We have leaders required to manage the transition",
Gopalakrishnan said on the stepping down decision of Pai and
Dinesh. He pointed out the company has witnessed such
transition in the past as well, when Nandan Nilekani quit and
when N R Narayana Murthy stepped down as Executive Chairman.
The exit of Pai and Dinesh was their "personal decision",
and they were not asked to quit by the company, Gopalakrishnan
said.
The Board of Directors would meet on April 30 to finalise
the company's leadership succession, post Murthy's retirement
as Chairman of the Board in August.
Infosys also announced the appointment of Ravi Venkatesan
as an additional Director of the company with immediate effect
and whose appointment would be placed before the shareholders
for approval during the company's AGM.
"The focus of the company would be to continue to provide
continuity," Gopalakrishnan said.
As on March 31, 2011, cash and cash equivalents,
including investments in available-for-sale financial assets
and certificates of deposits was Rs 16,810 crore against Rs
15,819 crore as on March 31, 2010.
