Infosys Q2 cons net up 10%; cuts FY12 $ revenue guidance
Technology bellwether Infosys has cut US dollar revenue guidance for the full year, saying the global macroeconomic environment remained uncertain, and currency also remained volatile.
October 12, 2011 / 10:40 IST
Moneycontrol Bureau
Technology bellwether Infosys has cut US dollar revenue guidance for the current fiscal year, saying the global macroeconomic environment remained uncertain, and currency also remained volatile.The Bangalore-based company now expects revenue in the range of USD 7.08-7.20 billion, up 17.1-19.1% year-on-year, lower than the USD 7.13-7.25 billion it had expected earlier.It expects full year earnings per American depository share (ADS) in the range of USD 3.02-3.06, up 15.3-16.8% from a year ago.The debt crisis in Europe and the unemployment and economic uncertainties in the US is a major worry for Indian software service providers as the two regions account for a major share of their revenues. Infosys derives 70% of its revenues from US and Europe. It is widely expected that clients will cut discretionary spends."The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry," said Infosys CEO and MD SD Shibulal."In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments," he said.In rupee terms, Infosys expects EPS of Rs 143.02-145.26 for 2011-12 (Apr-March), much higher than Rs 128.20-130.08 it had expected earlier, due to the recent depreciation in rupee. Revenue for the full year is expected to rise 21.8-24% of Rs 33,501-34,088 crore. Meanwhile, Infosys shares surged over 5% to Rs 2,632.30 on NSE in morning trade as the street cheered Infosys second quarter earnings, which were tad higher than expectations.Infosys reported a second quarter consolidated net profit of Rs 1,906 crore up near 10% from a year ago, while revenue was up around 17% to Rs 8,099 crore.A CNBC-TV18 poll of analysts had expected Infosys
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