India’s second largest IT services exporter – Infosys Technologies has announced its results for the quarter ended September 2010. It has reported net profit at Rs 1737 crore as against Rs 1488 crore, a growth of 16.73% on quarter-on-quarter basis (QoQ), as per International Financial Reporting Standards (IFRS).
On consolidated basis, company posted net sales at Rs 6947 crore as against Rs 6198 crore, a growth of 12.08% (QoQ).
Numbers were better-than-expectations; CNBC-TV18 expected revnues at Rs 6775.66 crore and net profit at Rs 1718.11 crore.
Commenting on the numbers, Moshe Katri, MD of Cowen & Company said the fundamentals continued to remain healthy for Infosys. “Infosys numbers will continue to gradually move higher.”
However, hike in attrition rate is not a good sign for the company, he believes. Attrition rate for the second quarter stood at 17.1% as against 15.8% (QoQ). Going forward, Katri said any upgrades will depend on currency trends.
Operating margins improved smartly to 30.2% versus 28.31% on quarter over quarter.
Earning per share (EPS) also jumped to Rs 30.41 from Rs 26.05 in previous quarter of same financial year 2010-11.
Standalone net sales rose 11.58% to Rs 6425 crore from Rs 5758 crore, (QoQ).
In dollar terms, consolidated revenue went up 10.1% to USD 1.49 billion versus USD 1.36 billion (QoQ).
Earning before interest, tax, depreciation and amortisation (EBITDA) improved to 33.6% versus 31.6%.
Revenues from top client grew by 5.59%; from top 5 clients grew by 12.94% and from top 10 clients grew by 12.61% (QoQ). The company has two clients accounting for more than USD 200 million revenues.
Q2 2011 geographical segment growth:
Revenues from North America region grew by 7.5% sequentially; and 7.5% in constant currency. Europe grew by 18.1% sequentially; and 15.6% in constant currency. Rest of the world grew by 6.8% sequentially; and 4.7% in constant currency.
Industry segment growth:
BFSI grew 8% sequentially; and 7.4% in constant currency. Manufacturing grew by 6.9% sequentially; and 6.1% in constant currency. Retail grew by 20.5% sequentially; and 19.9% in constant currency. Telecom grew by 3.9% sequentially; and 2.2% in constant currency. Others grew by 15.1% sequentially; and 14.7% in constant currency.
The company added 27 clients and there was gross addition of 14,264 employees. Company added net 7,646 staff in September quarter.
Cash, cash equivalents stood at USD 3.9 billion at end-September. Continued global economic uncertainty and extreme currency volatility is a concern for the company.
Infosys continues to see stronger volume growth, greater traction in Financial Serivces, Retail. Operating margins of the company improved in September quarter, and the liquidity position further strengthened.
Infosys IFRS FY11 guidance
In rupee terms, Infosys expects full year EPS at around Rs 115.07-117.07 and revenues at Rs 26,951 crore as against Rs 27,165 crore.
In dollar terms, it expects revenues to grow by 24-25% at USD 5.95-6 billion versus USD 5.7.5.8 billion expected in previous quarter.
For the third quarter of FY11, Infosys expects EPS growth of 1.5-3.1% and revenues growth of 3.5-4.5% on QoQ basis