Infosys Q4 net profit down 1.7% at Rs 1,613 cr

Infosys Technologies has announced its fourth quarter numbers. Its Q4 FY09 net profit dipped 1.7% at Rs 1,613 crore as against Rs 1,641 crore on quarter-on-quarter basis. It has come in better than expectations as a CNBC-TV18 poll saw profit at Rs 1,557.2 crore.

It reported a decline of 2.61% in revenues at Rs 5,635 crore as against Rs 5,786 crore QoQ. Its revenues were below estimates, as CNBC-TV18 poll was seen at Rs 5,664.4 crore.

ALERT: Infosys' numbers included tax reversal of Rs 108 crore for FY09 and Rs 15 crore for Q4.

Guidance for Q1 and FY10

The company is likely to report Q1 FY10 revenues at Rs 5,379-5,480 crore, while EPS is seen at Rs 23.55/share. The company guided for 16% drop in Q1 EPS on QoQ basis.

The company is expecting FY10 revenues to decline by 3.1-6.7% in dollar terms while increase in revenues by 1.7-5.7% in rupee terms. It is seeing EPS for full year FY10 at Rs 96.65-101.18 a share versus Rs 104.43 in FY09. Its FY10 EPS for ADS is seen down by 11-15%.

FY09

The company reported jump of 30% in consolidated net sales for FY09 at Rs 21,693 crore versus Rs 16,692 crore and increase of 28.5% in consolidated net profit at Rs 5,988 crore versus Rs 4,659 crore.

Infosys has recommended a final dividend of Rs 13.5/share.

The company COO said pricing environment continues to be challenging.

The company's Q4 EBIDTA margings declined to 33.6% versus 35.1% QoQ and its other income increased to Rs 252 crore from Rs 48 crore.

Top client revenues for the quarter ended March 2009 declined by 12.06% QoQ and top 10 client revenues declined by 5.75% QoQ.

Its blended rates were down by 3.45% in Q4. Infosys' onsite rates fell by 1.99% while offshore rates were down by 4.57%.

Services Break up

Q4 versus Q3

Application Development and Maintenance revenues were down 2.6% QoQ at 40.9% versus 42.5%

System Integration was down 0.3% at 3.7% versus 4%.

Testing Services were down 0.2% at 6.3% versus 6.5%.

Consulting Services and Package Implementation was up 0.3% at 25.4% versus 25.1%.

Others were up 0.7% at 4.1% versus 3.4%.

Products business was down 0.2% at 4% versus 4.2%.

FY09 versus FY08

Services:

Application Development and Maintenance revenues down 3% at 42.4% versus 45.4%.

Testing Services down 0.7% at 6.8% versus 7.5%.

Others down 0.8% at 3.9% versus 4.7%.

Consulting Services and Package Implementation up 1.1% at 24.9% versus 23.8%. 

System Integration up 1.2% at 3.6% versus 2.8%.

Products Biz up 0.3% at 3.6% versus 3.9%.

Clients:

Lost 4 clients in Q4.

Added 41 clients in the fiscal.

Revenue from top client: down 0.5% QoQ (from 6.2% to 5.7%).

Revenue from top client down 2.2% in FY09 Vs FY08 (from 9.1% to 6.9%).

Revenue from top 10 clients down 0.4% QoQ at 26.8% Vs 27.2%.

Revenue form top 10 clients down 3.7% in FY09 Vs Fy08 at 27.7% Vs 31.4%.

Segments:

Geographical Segment - Growth

Europe declined by 8.77% sequentially; 5.31% in constant currency

North America declined by 4.14% sequentially; 4.06% in constant currency

Rest of the world grew by 3.32% sequentially; grew by 5.03% in constant currency

Industry Segment - Growth

BFSI declined by 9.69% sequentially; 9.04% in constant currency

Telecom declined by 4.35% sequentially; 1.20% in constant currency

Others declined by 4.88% sequentially; 4.23% in constant currency

Manufacturing grew by 1.44% sequentially; 2.02% in constant currency

Retail grew by 2.61% sequentially; 3.53% in constant currency

Quick Facts

Shift to Fixed price contracts (38.3% Vs 36.3% QoQ)

Full year utilization down 2.2% at 73.7% Vs 75.9%

Full year attrition down 3.3% at 11.1% Vs 13.4%

Particulars	Mar-09	Dec-08	Sep-08	Jun-08
Net Sales / Interest Earned / Operating Income	5253	5429	5066	4516
Other Income	248	48	77	131
Total Income	5501	5477	5143	4647
Operating Expenses	-3425	-3475	-3348	-3112
Profit Before Depreciation and Tax	2076	2002	1795	1535
Depreciation	-209	-169	-161	-155
Profit before Tax	1867	1833	1634	1380
Tax	-298	-235	-244	-118
Net Profit	1569	1598	1390	1262
Equity Capital	286	#VALUE!	286	286