Infosys lowers revenue guidance for new fiscal

India's second largest software exporter Infosys Ltd Tuesday projected lower revenue growth of 7-9 percent for new fiscal 2014-15 in dollar terms due to marginal decline in fourth quarter (January-March) of just concluded fiscal 2013-14.

"We have guided for a revenue growth of 7-9 percent (dollar terms) in FY 2015 and remain focused on building the growth momentum by making all the necessary investments in our business," Infosys chief executive S.D. Shibulal said in a statement here.

Though the IT bellwether's revenue performance in fourth quarter (Q4) was disappointing with a sequential decline of 0.4 percent in dollar terms, growth on annualised basis was 7.9 percent to $2.1 billion.

"We have been able to double our growth rate for the full year compared to last year, though performance in the last quarter (Q4) has been disappointing," Shibulal admitted in the statement.

Year-on-year (YoY) basis, revenue grew 11.5 percent to $8.25 billion for entire fiscal 2014 from $7.4 billion in fiscal 2013.

"Lower guidance for FY 2015 is a reflection of our lower than expected performance in third and fourth quarters of FY 2014," Shibu Lal told IANS after the results were announced.

In a regulatory filing earlier, the blue-chip company said net profit for quarter under review (Q4) increased 25 percent YoY to Rs.2,992 crore and consolidated revenue was up 23 percent YoY to Rs.12,875 crore, as per the Indian accounting standard.

Under the International Financial Reporting Standard (IFRS), net income for fourth quarter grew 9.7 percent YoY to $487 million and gross revenue 7.9 percent YoY to $2.1 billion.

For the entire fiscal (FY 2014), net profit grew 13 percent YoY to Rs.10,648 crore, while consolidated revenue increased 24 percent YoY to Rs.50,133 crore, as per the Indian accounting standard.

Under the IFRS, net income, however, grew 1.5 percent YoY to $1.75 billion and gross revenue 11.5 percent YoY to $8.25 billion.