Infosys Technologies — the country’s second largest software company — posted a marginal 0.9 per cent dip in its consolidated net profit for the quarter ended March, compared to the same period a year ago. However, a better-than-expected prediction for 2010-11 saw the company's share price spurt 3.7 per cent to Rs 2,782 at the Bombay Stock Exchange today.
On an annual basis, the company posted a 4.1 per cent increase in net profit to Rs 6,219 crore, on a revenue of Rs 22,742 crore, a growth of 4.8 per cent over the previous year. This, despite an appreciating rupee.
“Though the economic environment continues to be challenging, businesses are investing in growth for building a better future. We are benefiting from that,” said S Gopalakrishnan, CEO & MD, Infosys Technologies.
The company expects income to grow by 9-11 per cent in 2010-11, while earnings per share (EPS) is expected to be in the range of Rs 106.82 and Rs 111.28, which would mean a dip of 2 per cent or a growth of 2.1 per cent compared to EPS a year ago. The company has typically surpassed its guidance. For 2009-10, the company has posted EPS of Rs 108.9, nearly 2 per cent more than the upper end of forecast.
In the current quarter, Infosys expects revenue to grow 8.2-9 per cent, while EPS is expected to be in the range of Rs 24.34-24.79, which is a decline of 9 per cent or a gain of 7.4 per cent compared to the year ago numbers.