Infosys posts 25% q-o-q growth in net at Rs 2,372 cr

IT major Infosys reported a quarter-on-quarter growth of 25% in net profit to Rs 2,372 crore for the quarter ended December 31, 2011. In the previous quarter its net profit was Rs 1,906 crore.

On a year-on-year (y-o-y) basis, the profit was up 33% from Rs 1,780 crore last December.

The Infosys shares fell 6% in opening trade.

The company beat market forecasts of a 30% y-o-y increase in net profit as a weak rupee boosted margins, but it cut its full-year revenue outlook because of the debt crisis in Europe, its second-biggest market.

Consolidated revenues jumped 30.8% to Rs 9,298 crore as against Rs 8,099 crore in previous quarter. In last December, the revenue was  Rs 7,106 crore.

"The global economy, driven by slower growth in developed markets, coupled with the European crisis, could impact the growth of the IT industry," Infosys CEO and Managing Director S D Shibulal said.

"Notwithstanding short-term challenges, we are focused on long-term growth opportunities by investing in platforms and solutions, which will accelerate innovation, enhance returns for our clients and deliver higher business value," he added.

Infosys forecast dollar revenue growth of 16.4% for the fiscal year ending March 2012, which is lower than the 17.1% to 19.1% projected in October.

"The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry," Infosys Chief Executive SD Shibulal said in a statement.

For the ongoing quarter ending March 31, 2012, Infosys expects revenues to be in the range of Rs 9,391 crore to Rs 9,412 crore, with y-o-y growth of 29.5% to 29.8%.

For the year ending March 31, 2012, the company expects revenues to be in the range of Rs 34,273 crore to Rs 34,294 crore, translating into y-o-y growth of 24.6% to 24.7%.

The company said as of December 31, 2011, its cash and cash-equivalents, including investments in available-for-sale financial assets and certificates of deposits, stood at Rs 19,752 crore.

"The global currency market continues to be volatile, with the Indian rupee depreciating by 11% during the quarter," Infosys' Member of the Board and Chief Financial Officer V Balakrishnan said.

"Managing extreme currency volatility in an uncertain economic environment is going to be a challenge for the industry. We believe our focus on high-quality growth combined with our flexible financial model will position us better during these challenging times," Balakrishnan added.

More than half of Infosys's revenue is generated from the United States.