IT major Infosys reported a 5.2% dip in its net profit at Rs 1,722 for the quarter ended June 30, 2011, as against Rs 1,818 posted in the previous quarter ended MArch 31, 2011.
However, total income rose 12.3% to Rs 7,928 crore compared to Rs 7,055 crore announced in the previous quarter.
On an year-on-year basis, Infosys net profit jumped 15.7% even though it narrowly missed expectations as a surge in wages offset strong demand from western clients.
"We have re-organised the company to be more industry domain-focused, which will accelerate innovation and make us more responsive to clients' needs. We believe that Infosys is well positioned to be a transformational partner for large clients even as they navigate through uncertain times," Infosys CEO and Managing Director S Gopalakrishnan said.
The company's revenues rose to Rs 7,485 crore in the first quarter from Rs 6,198 crore in the year-ago period, up 20.76%.
Infosys expects revenues to be in the range of Rs 7,699 crore and Rs 7,810 crore (y-o-y growth of 10.8% to 12.4%) for the quarter ending September 30, 2011.
In addition, the company forecast its revenues would be in the range of Rs 31,777 crore and Rs 32,311 crore (y-o-y growth of 15.5% to 17.5%) for the fiscal ended March 31, 2012. Earnings per share (EPS) is expected to be in the range of Rs 29.64 and Rs 30.15, a y-o-y decline of 2.5% to 0.9%.
"We continue to focus on high quality growth, balancing both revenue growth and margins," Infosys Member of the Board and Chief Financial Officer V Balakrishnan said.
As of June 30, 2011, Infosys' cash and cash-equivalents, including investments in available-for-sale financial assets and certificates of deposit, stood at Rs 16,969 crore, as against Rs 16,005 crore as of June 30, 2010.
Infosys, which has Goldman Sachs, BT Group and BP Plc among its clients, added 26 new clients during the quarter.
“Our top five clients grew by 8.2% this quarter. Volumes grew by 4% as a result of our tactical engagement with large clients. Our initiatives to address the company’s transition into the next generation of global consulting and technology services will position us as a high-quality player in the IT services space,” said S D Shibulal, Member of the Board & Chief Operating Officer.
At the end of June 30, the company had 1,33,560 employees, including 2,740 new staff inducted during the first quarter.
Infosys said it expected its revenue for the 2011/12 fiscal year to rise 18-20%.
Shares in Infosys, valued at more than $38 billion, have fallen 15.2% this year, compared with an 11.7% drop in the sector index and a 8.5% fall on Bombay Stock Exchange.
Infosys stock was down 4.49% at Rs 2,788 on the BSE at 0925 hours.
