Driven by better account management, healthy addition of new clients and strong growth in Europe, Infosys Technologies, India’s second largest IT exporter, has posted a 14.2 per cent growth in its net profit to Rs 1,780 crore in the quarter ended December 31, 2010 when compared with the corresponding quarter in the previous fiscal (Rs 1,559 crore).
During the period under review, the IT bellwether’s revenue went up by 23.8 per cent to Rs 7,106 crore when compared with the same quarter in fiscal 2009-10 (Rs 5,741 crore). Earnings per share was Rs 31.15 for the quarter which is a year on year (YoY) increase of 14 per cent.
During the quarter, Infosys and its subsidiaries added 40 new clients which took the total number of its active clients to 612 even though the contribution of the top five clients to its overall revenue came down from 17.6 per cent a year ago to 15.4 per cent in the quarter. However, the company managed to grow its smaller accounts as a result of which the number of $1 million plus clients increased to 350 from 336 reported in a year ago.
On a trailing quarter basis (when compared with the quarter ended September 30, 2010), the company’s net profit went up by 2.5 per cent and the revenue grew by 2.3 per cent. S Gopalakrishnan, CEO of the Bangalore-headquartered company said, “The weaker economic recovery in developed markets coupled with unemployment and rise of sovereign default could Impact industry growth. We are working with our clients to fine tune their strategies for future.”
The company said, for the quarter ending March 31, 2011, it was expecting its revenue to be in the range of Rs 7,157 crore and Rs 7,230 crore with a YoY growth of 20.4-21.6 per cent. For the fiscal year ending March 31, 2011, the company has given a revenue guidance in the range of Rs 27,408 crore and Rs 27,481 crore with a YoY growth of 20.5 to 20.8 per cent.
Expansion of Board
Meanwhile, the company’s Board of Director have appointed R Seshasayee as the additional director of the company with immediate effect. Seshasayee is the managing director of Ashok Leyland.
The shares opened down by 3.47 per cent at 3,261 on the BSE.