Infosys Q2 net up 1.5%, ups FY14 guidance to 9-10%

Moneycontrol Bureau

Infosys' second quarter net profit grew 1.5 percent quarter-on-quarter (1.6 percent year-on-year) to Rs 2,410 crore for the quarter ended September 2013, impacted by one-time visa settlement charge of Rs 219 crore.

Consolidated quarterly revenue jumped 15 percent sequentially (31.5 percent year-on-year) to Rs 12,965 crore, with the company attributing it to robust volume growth, stable pricing and strong client addition during the growth. The company, like most exporters, also benefitted from the weakness in the rupee during the quarter. The company said average rupee-dollar rate during the quarter was 62.77.

Consolidated dollar revenues grew 3.76 percent Q-o-Q to USD 2066 million.

The company raised its full year revenue guidance to 9-10 percent from 6-10 percent earlier. This has given some comfort to analysts that the company will be able to grow its revenues by at least 10 percent this quarter.

Analysts on an average had expected the company to report a net profit of Rs 2,614 crore on revenues of Rs 12,781 crore for the quarter (dollar revenues of USD 2042 million). Average rupee-dollar rate for the quarter was 62.77 per dollar.

UBS and Citi said Infosys' second quarter revenues were above their expectations. UBS has maintained its buy rating on the stock with a target price of Rs 3,550 apiece.

"We have witnessed broad-based volume growth and robust client addition during the quarter. We have signed five large deals in Q2," Infosys said in its release.

Consolidated adjusted earnings before interest and tax (EBIT) increased 14.7 percent sequentially to Rs 3,056 crore and margin remained flat at 23.6 percent as against 23.64 percent.

Standalone net profit increased to Rs 2,326 crore from Rs 2,250 crore and income from operations jumped to Rs 11,482 crore from Rs 9,959 crore for the quarter ended September 2013, quarter-on-quarter.

Infosys declared an interim dividend of Rs 20/share for the financial year 2013-14.

Lodestone

Net income of its Swiss-based subsidiary Lodestone stood at USD 1.21 million during the quarter gone by as against USD 1.88 million in previous quarter while its revenue rose to USD 98.13 million from USD 90.67 million Q-o-Q.