Infosys Q2 Result Highlights, Profit up 53.5% at Rs 930 cr
Infosys Technologies Ltd, the second-largest software services exporter, beats market forecasts with a 53.5 per cent rise in quarterly profit, as outsourcing demand outstrips rising salary costs.
Nasdaq-listed Infosys said it had added 45 new clients and the pricing environment continued to be stable.
“Our pricing environment continues to be stable with an upwards bias,” said S.D. Shibulal, member of the board and group head, worldwide sales and customer delivery.
Shares of Infosys were up 4.1 per cent at Rs 1,984.95 shortly after the start of trading.
Infosys, which the market values at $22.8 billion, raised its 2006/07 revenue forecast to Rs 13,853-13,899 crore, up 45.5-46 per cent from a year ago, and forecast full-year earnings per share of Rs 66, up 46.6 per cent from a year ago.
July-September Indian GAAP net profit rose to Rs 930 crore ($203 million) from Rs 606 crore a year earlier, beating a median net profit forecast for Rs 850 crore in a Reuters poll of 14 brokerages.
Infosys develops applications, designs supply chains and offers back-office facilities, and ranks behind Tata Consultancy Services Ltd (TCS) in the $23-billion software services export industry. The company has roughly doubled its revenue over the past two business years to more than $2 billion.
The booming software and back-office industry, which gets 90 per cent of its revenue from overseas clients, expects exports to rise 27-30 per cent to $29-31 billion in the year to March 2007.
TCS is due to report its quarterly results on Monday, with Wipro due on October 18.
Highlights
Consolidated results for the quarter ended September 30, 2006
? Income was Rs. 3,451 crore for the second quarter ended September 30, 2006; YoY growth was 50.4%
1. Net profit after tax and before exceptional items was Rs. 930 crore for the quarter ended September 30, 2006; YoY growth was 52.0%
2. Earnings per share* before exceptional items increased to Rs. 16.75 from Rs. 11.13 for the corresponding quarter in the previous year; YoY growth was 50.5%
3. Interim dividend of Rs. 5 per share (100% on par value of Rs. 5 per share) compared to Rs. 3.25 (65% on par value of Rs. 5 per share) for the corresponding period in the previous year
Others
4. 45 new clients were added during the quarter by Infosys [Get Quote] and subsidiaries
5. Gross addition of 10,795 employees (net 7,741) for the quarter by Infosys and subsidiaries
6. 66,150 employees as on September 30, 2006 for Infosys and subsidiaries
“Our business model provides a compelling value proposition to clients in a flat world,” said Nandan M Nilekani, CEO and managing director. “Our robust organic growth coupled with investments in various strategic areas helped us to grow faster in this environment. We have revised our guidance to cross $ 3 billion in revenues this fiscal.”
US GAAP: Highlights
Consolidated results for the quarter ended September 30, 2006
* Second quarter revenues at $ 746 million, up 42.4% from the corresponding quarter last fiscal
* Earnings per American Depositary Share (ADS)* increased to $ 0.36 from $ 0.25 in the corresponding quarter last fiscal
Business outlook
The company’s outlook (consolidated) for the quarter ending December 31, 2006 and the fiscal year ending March 31, 2007, under Indian GAAP and US GAAP, is as follows:
Outlook under Indian GAAP - consolidated
Quarter ending December 31, 2006**
* Income is expected to be in the range of Rs. 3,602 crore and Rs. 3,625 crore; YoY growth of 42.3% - 43.2%
* Earnings per share* are expected to be Rs. 16.84; YoY growth of 42.2%
Fiscal year ending March 31, 2007**
* Income is expected to be in the range of Rs. 13,853 crore and Rs. 13,899 crore; YoY growth of 45.5% - 46.0%
* Earnings per share* are expected to be Rs. 66; YoY growth of 46.6%
Outlook under US GAAP
Quarter ending December 31, 2006
* Consolidated revenues expected to be between $ 790 million and $ 795 million for the quarter ending December 31, 2006 (YoY growth of 41.3% - 42.2%) and between $ 3.03
billion and $ 3.04 billion for the fiscal year ending March 31, 2007 (YoY growth of 40.6% - 41.1%)
* Consolidated earnings per ADS* expected to be $ 0.37 for the quarter ending December 31, 2006; (YoY growth of 42.3%) and $ 1.44 for the fiscal year ending March 31, 2007; (YoY growth of 41.1%)
Fiscal year ending March 31, 2007
* Consolidated revenues are expected to be in the range of $ 3.03 billion and $ 3.04 billion; YoY growth of 40.6% - 41.1%
* Consolidated earnings per American Depositary Share* are expected to be $ 1.44; YoY growth of 41.1%
* Adjusted for the issue of bonus shares in the ratio of 1:1 allotted on July 15, 2006
** conversion 1 $ = Rs. 45.60
“We saw strong double-digit sequential growth during the quarter,” said S Gopalakrishnan, COO, president and joint managing director. “Package implementation, testing, consulting and business process management services are growing fast. We have built the necessary scale and momentum into these services for rapid growth.”
Source : sify. Rediff
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