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Infosys Q1 net up 3.7% at Rs 2,374 crore

Total revenues rise 17.2% y-o-y; company leaves FY14 dollar revenue target unchanged at 6-10%

Pradeesh Chandran  |  Bangalore 

India’s second largest IT services company Infosys today reported a net profit of Rs 2,374 crore for the first quarter of FY14, up 3.7% when compared to the corresponding quarter last year.

The total revenues of the company for the April-June quarter ended June 30, 2013 stood at Rs 11,267 crore, registering a growth of 17.2% as against the corresponding quarter last year.

On a sequential basis, the Bangalore-based company’s net profit for the first quarter of FY14 witnessed a marginal decline of 0.8% while the revenues witnessed a growth of 7.8%.

The Earnings per share (EPS) was at Rs 41.54 for the quarter ended June 30, 2013, witnessing a y-o-y growth of 3.7%.

In dollar terms, Infy’s net profit was at $418 million for the quarter ended June 30, 2013, witnessing a sequential decline of 5.9%. The total revenues for the first quarter stood at $1,991 million, registering a q-o-q growth of 2.7%. On a y-o-y basis, the net profit grew 0.5% while the revenues grew by 13.6%.

“Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year,” said Infosys, CEO and Managing Director, S D Shibulal.

During the quarter under review, Infosys and its subsidiaries added 66 new clients. The first quarter witnessed a growth of its $100 million client to 15 from 12 as against the previous quarter. The company also made a gross addition of 10,138 employees (net addition of 575) for the quarter, taking its total employee count at 1,57,263 people as on June 30, 2013.

“We maintained our margins and continued making investments in the business,” said Infosys, Chief Financial Officer, Rajiv Bansal.

Going forward, in rupee terms the company’s consolidated revenues for the fiscal year ending March 31, 2014, is expected to grow in the range of 13% to 17%. In dollar terms, the consolidated revenues are expected to grow 6% to 10%.

The company also said the compensation hike announced in July will impact the company’s margins in the future quarters.

“We have announced compensation increases for FY14 effective July which will affect our margins in the future quarters,” said Rajiv Bansal.

On a geographical basis, the North American market witnessed a growth of 4.9% sequentially and 5% on constant currency basis. Meanwhile, the European market declined by 3% sequentially and 2.4% in constant currency. Indian market witnessed a sequential growth of 10.4%, while the rest of the world grew by 2.4% sequentially and 6.5% in constant currency.

Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were at Rs 24,078 crore as against Rs 23,958 crore as on March 31, 2013.

On the BSE, shares of the company was trading at Rs 2,889 up 14% in the early morning trade.

First Published: Fri, July 12 2013. 09:21 IST