Infosys Q1 net down 1% at Rs 2,289 cr QoQ
IT-major Infosys reported a marginal decline of 1.2% in consolidated net profit at Rs 2,289 crore for the quarter ended June 2012. It was Rs 2,316 crore in the previous quarter ended March 31.
On yearly basis, the company's net profit jumped 33% from Rs 1,720 crore in the same period a year ago.
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Earnings before interest and taxes increased marginally by 1.7% to Rs 2,693 crore as against Rs 2,647 crore in the previous quarter.
Revenues rose 8.6% to Rs 9,616 crore from Rs 8,852 crore in the previous quarter. The dollar revenue dropped 1.1% to $1,752 million as compared to $1,771 million in the quarter ended March 31, 2012.
On quarterly basis, the EBIT margins declined to 28% from 29.9% in the previous quarter.
During the quarter, the IT bellwether added 51 clients and sees it FY13 revenue at $7.3 billion.
Earnings per share (EPS) also dropped 1.2% to Rs 40.06 from Rs 40.54 in the previous quarter.
“Our focus on Infosys 3.0 and building tomorrow’s enterprise coupled with disciplined execution will help us deliver high-quality growth, despite challenges seen in the global economic situation resulting in slower IT spends by large corporations," said S D Shibulal, CEO and Managing Director.
The company had a total employee headcount of 1,51151 at the end of the first quarter of FY13.
Surprisingly the company which gives the revenue guidance for the quarter has stopped giving the numbers for quarter.
However, going forward the company’s outlook for the revenues for the full fiscal year ending March 31, 2013 is expected to be at least Rs 40,364 crore with an expected growth of 19.7%.
Earlier the company had given an guidance for FY13 in the range between Rs 38,431 and Rs 39,136 crore.
The earnings per share (EPS) for the full year ending March 31, 2013 is expected to be at least Rs 166.46 Y-o-Y, growth of 14.4%.
The conversion rate for the rest of the fiscal is Rs 55 as against one dollar.
“Global currency volatility continues to be a big challenge for the industry," said V Balakrishnan, Member of the Board and Chief Financial Officer. “We are making the right investments balancing the short-term needs with long-term opportunities."
As on June 30, 2012, cash and cash equivalents, including investments in available-for-sale financial assets, certificates of deposits and government bonds was Rs 20,596 crore .
The company's attrition at 14.9% was slightly up from 14.7% in the earlier quarter. But utilisation at 71.6% (excluding trainees) for the quarter was of concern as the company's bench would have increased. Infosys utilisation (excluding trainees) for the last quarter was 73%. Utilisation including trainees for the quarter was 67.2%.
From a geography growth perspective North America grew by 1.6% sequentially. But Europe declined by 8.1%. India too declined by 4.3%, but in constant currency grew 5%.
The pressure in its largest vertical continued this quarter too, with financial services and insurance down 1%. Manufacturing grew by 2.5% and reatil, consumer good and life sciences grew 2.3%. Energy, communications services declined by 8.2%.
Infosys stocks were trading almost 8% down at Rs 2,270 apiece on BSE at 9:15 am.