Infosys Q2 net up 24 pc at Rs 2,369 cr;lowers revenue guidance
Flagging off the second-quarter earnings season, Infosys said profit rose to Rs 2,369 crore in July-September from Rs 1,906 crore a year earlier.
Revenue rose 21.7 per cent to Rs 9,858 crore.
The company, listed on the Nasdaq Stock Market and in India, kept its revenue outlook for the fiscal year unchanged at the USD 7.34 billion it projected three months ago.
In rupee terms, the revenue growth guidance for the year ending March 31, 2013 was lowered to 17.3 per cent at Rs 39,582 crore, from an earlier projection of 19.7 per cent rise to Rs 40,364 crore, sending off alarm bells.
Shares of Infosys, which has a 7.4 per cent weighting on the Sensex, tumbled 7.76 per cent intra-day and closed at Rs 2,395.65 apiece, down 5.36 per cent from the yesterday's close.
Infosys CFO V Balakrishnan said operating profit margin will decline by 2 percentage points because of wage increases and fluctuations in the rupee, while CEO S D Shibulal said the business environment continues to be "challenging".
The company, which has undergone a slew of management changes in the last one year, also added that V Balakrishnan will give up his position as CFO from October 31.
A stronger rupee hurt Infosys, which gets around 65 per cent of its revenue from North America and over 21 per cent from Europe.
"Environment continues to be challenging for our clients and that reflects in their ability to take decision to invest in the future and thus has an impact on us," Shibulal said. MORE