NEW DELHI: Indian IT outsourcing giant Infosys reported yesterday a nearly four percent rise in quarterly net profit and kept its market forecast intact, driving the firm’s shares up 15 percent.
Infosys, whose earnings are seen as a sector bellwether, said net profit rose 3.7 percent to Rs23.74bn ($396m) for the first quarter to June, from Rs22.89bn a year earlier — in line with market forecasts.
Despite “an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in the first quarter”, said Infosys chief executive S D Shibulal. Infosys, the country’s second-biggest software services exporter, is “cautiously optimistic about (the) rest of the year”, Shibulal said.
The Nasdaq-listed firm’s earnings were driven by contract wins and foreign exchange gains, a company statement said. Shares climbed 15 percent in early trade on the earnings and an announcement that Infosys was sticking by its six to 10 percent revenue growth projection for the fiscal year to March 2014.
Infosys last month recalled company founder Narayana Murthy, who had retired two years ago at the age of 65, to serve as executive chairman in a bid to revive the company’s fortunes. Murthy’s return comes at a time when the company has been struggling with weak earnings and falling market share to rivals such as Tata Consultancy Services and HCL.
The firm added 66 clients and a net 575 employees in the three months to June. Revenues for the quarter rose 17.2 percent to Rs112.67bn, said the company, whose results kicked off India’s quarterly earnings season.
AFP
