Infosys Q2 net up 30.2%, will not increase bid for Axon

Infosys Technologies, India's second largest software services exporter, has reported a better than expected 30.2 per cent increase in net profit to Rs 1,432 crore for the second quarter of current fiscal as compared to corresponding period last fiscal. Revenues were up 32 per cent to Rs 5,418 crore for the second quarter as 40 new clients were added during the quarter by Infosys and its subsidiaries.

On a sequential quarter basis, net profit was up by 10 per cent as compared to the first quarter of current fiscal, while the topline was up 11.6 per cent.

“We benefited from the depreciation of the rupee against the US dollar during the quarter which was partially offset by the sharp appreciation of the US dollar against all other major currencies,” said V Balakrishnan, Chief Financial Officer, Infosys. “Our liquidity position continues to be strong with cash and cash equivalents reaching $1.9 billion.”

During the second quarter, Infosys and its subsidiaries added 10,117 employees (gross). The net addition during the quarter was 5,927. “We reached a milestone of crossing 1,00,000 employees,” said T. V. Mohandas Pai, Member of the Board and Head – HRD and Education & Research.

Infosys, whose guidance sets the street for the quarter ahead said it will grow its topline on a year on year basis in the range of 30-34 per cent for the third quarter of the current fiscal, while for the entire year, the growth will be in the range of 28-30 per cent.

The company also announced that it will not increase its bid for UK-based Axon. Infosys had earlier offer 600 pence per share to acquire Axon Consulting, post which HCL Technologies had offered 650 pence per share for the same target company.