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India’s second largest IT services exporter – Infosys Technologies\u00a0 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).
\nOn consolidated basis, company posted net sales at Rs 6947 crore as against Rs 6198 crore, a growth of 12.08% (QoQ).<\/p>\n
Numbers were better-than-expectations; CNBC-TV18 expected revnues at Rs 6775.66 crore and net profit at Rs 1718.11 crore.<\/p>\n
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.”<\/p>\n
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.<\/p>\n
Operating margins improved smartly to 30.2% versus 28.31% on quarter over quarter.<\/p>\n
Earning per share (EPS) also jumped to Rs 30.41 from Rs 26.05 in previous quarter of same financial year 2010-11.<\/p>\n
Standalone net sales rose 11.58% to Rs 6425 crore from Rs 5758 crore, (QoQ).<\/p>\n
In dollar terms, consolidated revenue went up 10.1% to USD 1.49 billion versus USD 1.36 billion (QoQ).<\/p>\n
Earning before interest, tax, depreciation and amortisation (EBITDA) improved to 33.6% versus 31.6%.<\/p>\n
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.<\/p>\n
Q2 2011 geographical segment growth:<\/p>\n
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.<\/p>\n
Industry segment growth:<\/p>\n
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.<\/p>\n
The company added 27 clients and there was gross addition of 14,264 employees. Company added net 7,646 staff in September quarter.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Infosys IFRS FY11 guidance<\/p>\n
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.<\/p>\n
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.<\/p>\n
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<\/p>\n