The IT bellwether is happy and brimming. After three disappointing quarters, Infosys has finally brought smiles to investors. 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. (Get a detailed analysis of the results)
The management is optimistic that there will be no further budget cuts while better pricing is expected this year. Amidst the uncertain global macroeconomic environment, Infosys has managed to stay afloat, the company noted. In an interview to CNBC-TV18, the management of Infosys gave their guidance and perspective on their performance. The management include SD Shibulal (CEO and MD), V Balakrishnan (CFO), BG Srinivas (Head - Europe and Global Head-Manufacturing), Ashok Vemuri (Head-Americas and Global Head-Financial Services and Insurance), Pravin Rao (Senior VP-Retail, Consumer Package Goods, Logistics and Infra Management) and Chandra Shekar Kakal, Senior VP and Global Head-Business IT Services. The management said that even in a rough weather, Infosys has seen all round growth across verticals in Q2. Guidance 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. For the third quarter (Oct-Dec), Infosys expects earnings to grow 14.5-15.9% year-on-year to USD 0.79-0.80 per ADS. Revenue is expected to grow 13.7-16.1% to USD 1.80-1.84 billion. In rupee terms, Infosys sees third quarter EPS at Rs 38.51-39.20. Oct-Dec revenue is expected to rise 24.2-26.8% to Rs 8,826-9,012 crore. Clienteles and pricing Infosys has added 45 new clients this quarter, out of which 10 have stepped in from Europe. According to the management, there has been no change in volume and pricing assumptions for FY12. At the moment, the company is not seeing project cancellations or budget cuts in this year. However, a better clarity on client budgets is likely to be seen by January, the management said. Concerns Committed to maintaining margins, better pricing, Infosys is expecting currency volatility to persist which will be a major dampner. The management is also concerned that macro environment will have an impact on next yearDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
