Infosys sees stronger second half: BG Srinivas
The growth in the second half will be driven by demand from sectors such as retail, life sciences and energy, he said.
By Agencies | Updated:
MYSORE: Infosys Ltd, country's No 2 software services exporter, sees a stronger second half compared to the first half, a senior executive said on Tuesday, after the company's first-quarter net profit narrowly missed expectations.
"The year, it looks like, is going to be back-end loaded. The third quarter and the fourth quarter should be much better," B.G. Srinivas, a member of the Infosys board and head of its European operations, told media.
The growth in the second half will be driven by demand from sectors such as retail, life sciences and energy, he said.
Infosys beat its revenue forecast by 1.8% for the April-June first quarter of the 2011-12 fiscal, its stock (at Rs 5 per share) plunged nearly 6% in the morning trade on the bourses on Tuesday as its performance and earnings outlook belied street expectations.
Against the projected revenue of Rs 7,347 crore (Rs 73.47 billion) or 19% year-on-year (YoY) growth for the quarter, revenue increased 1.8% to Rs 7,485 crore (Rs 74.85 billion), registering 21 percent YoY growth and 3.2% sequentially (quarter-on-quarter).
Net profit for the quarter, which grew 16 percent YoY to Rs.1,722 crore (Rs 17.22 billion), however, declined sequentially 5.3% from Rs 1,818 crore (Rs 18.9 billion) in the previous quarter (Jan-March) of last fiscal (2010-11).
Though EPS for FY 2012 is expected to be Rs 129 projecting 8% growth annually (YoY), it is projected be 1.7% lower YoY at Rs 30 for the second quarter (Q2).
As a result, the blue chip company's scrip declined 5.8% to Rs 2749.35 from its previous closing price of Rs 2,919 on the Bombay Stock Exchange (BSE) and 5.96% to Rs 2746.80 from its previous closing price of Rs 2,921 on the National Stock Exchange (NSE) after opening at Rs 2,850 on both the bourses.
Under the International Regulatory System (IFRS) in dollar terms, net profit grew 18 percent YoY to $384 million and income 23% YoY to $1.7 billion.
On annualised basis, the revised projected growth for FY 2012 will be 16.5% over fiscal 2011.
For the second quarter (July-Sept) of this fiscal (FY 2012), revenue is projected to be Rs 7,755 crore (Rs 77.6 billion), which will be 12 percent growth YoY.
In dollar terms under IFRS, revenue for this quarter (Q2) will be $1.74 billion, projecting 16.5 percent growth YoY.
"The year, it looks like, is going to be back-end loaded. The third quarter and the fourth quarter should be much better," B.G. Srinivas, a member of the Infosys board and head of its European operations, told media.
The growth in the second half will be driven by demand from sectors such as retail, life sciences and energy, he said.
Infosys beat its revenue forecast by 1.8% for the April-June first quarter of the 2011-12 fiscal, its stock (at Rs 5 per share) plunged nearly 6% in the morning trade on the bourses on Tuesday as its performance and earnings outlook belied street expectations.
Against the projected revenue of Rs 7,347 crore (Rs 73.47 billion) or 19% year-on-year (YoY) growth for the quarter, revenue increased 1.8% to Rs 7,485 crore (Rs 74.85 billion), registering 21 percent YoY growth and 3.2% sequentially (quarter-on-quarter).
Net profit for the quarter, which grew 16 percent YoY to Rs.1,722 crore (Rs 17.22 billion), however, declined sequentially 5.3% from Rs 1,818 crore (Rs 18.9 billion) in the previous quarter (Jan-March) of last fiscal (2010-11).
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Due to lower sequential growth in net profit, the company's earnings per share (EPS) declined 5.3% to Rs 30.14 from Rs 31.82% though increased 16% on annualised basis (YoY).Though EPS for FY 2012 is expected to be Rs 129 projecting 8% growth annually (YoY), it is projected be 1.7% lower YoY at Rs 30 for the second quarter (Q2).
As a result, the blue chip company's scrip declined 5.8% to Rs 2749.35 from its previous closing price of Rs 2,919 on the Bombay Stock Exchange (BSE) and 5.96% to Rs 2746.80 from its previous closing price of Rs 2,921 on the National Stock Exchange (NSE) after opening at Rs 2,850 on both the bourses.
Under the International Regulatory System (IFRS) in dollar terms, net profit grew 18 percent YoY to $384 million and income 23% YoY to $1.7 billion.
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The buoyant growth in the first quarter (Q1) made the global software major to marginally up its revenue guidance for the entire fiscal (FY 2012) to Rs 32,311 crore (Rs 323 billion) from Rs 32,270 crore (Rs 322 billion) projected April 14.On annualised basis, the revised projected growth for FY 2012 will be 16.5% over fiscal 2011.
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Under the IFRS, income for fiscal under review will be $7.2 billion, same as estimated at the beginning of the fiscal, projecting 19 percent growth YoY.For the second quarter (July-Sept) of this fiscal (FY 2012), revenue is projected to be Rs 7,755 crore (Rs 77.6 billion), which will be 12 percent growth YoY.
In dollar terms under IFRS, revenue for this quarter (Q2) will be $1.74 billion, projecting 16.5 percent growth YoY.
"We have re-organised the company to be more industry domain focused which will accelerate innovation and make us more responsive to clients' needs. We believe that we are well-positioned to be a transformational partner for large clients even as they navigate through uncertain times," Infosys chief executive S. Gopalakrishnan said in a statement.
The company and subsidiaries added 26 customers during the quarter (Q1), taking the total number of clients to 628 though it was lower than 38 it acquired in the same quarter of last fiscal (FY 2011).
"Our top five clients grew by 8.2% this (Q1) quarter. Volumes grew by four percent as a result of our tactical engagement with larger clients. Our initiatives to address the company's transition into the next generation of global consulting and technology services will position us as a highly-quality player in the IT services space," chief operating officer S.D. Shibulal said.
The company added 9,922 employees during the quarter taking the total headcount to 133,560 as net addition was 2,740.
"We continue to focus on high-quality growth balancing both revenue growth and margins. We are making the right investments to position ourselves as the partner of choice for large global clients," chief financial officer V. Balakrishnan said.
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The company's cash reserves, including investments increased to Rs 16,969 crore (Rs 170 billion/$3.8 billion) from Rs 16,005 crore (Rs 160 billion/$3.5 billion) year ago.Download
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