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Infosys shares dive after lacklustre financials and lowered outlook

Bangalore
S D Shibulal

Bangalore: Shares in India's second largest IT consulting firm Infosys dived today, after it reported weak financial results and lowered its growth forecast for 2013.

For the quarter ended March 31, 2013 Infosys reported:

  • Revenues of $1,938 million; QoQ growth was 1.4% YoY growth was 9.4%
  • Net profit of $444 million: QoQ growth was 2.3% YoY decline was 4.1%
  • Infosys and its subsidiaries added 56 clients during the quarter
  • Gross addition of 8,990 employees (net addition of 1,059) for the quarter by Infosys and its subsidiaries
  • 156,688 employees as on March 31, 2013 for Infosys and its subsidiaries

In the full year, net profit was up marginally by 0.5% to $1,725 million, on revenues up 6% at $7,398 million.

"Global economic uncertainties remain challenging for the IT industry," said S. D. Shibulal, CEO and Managing Director.

"We are progressing well on our strategic direction of building a high-quality company which is relevant to our clients. We are making all the investments necessary to differentiate ourselves in the market place while positioning ourselves as a partner of choice for our clients."

"The global currency market continues to be volatile reflecting the uncertain economic environment. Our hedging strategy helps us to minimize the volatility impact," said Rajiv Bansal, Chief Financial Officer.

"We have a healthy balance sheet with our cash and cash equivalents at US$ 4.4 billion."

Outlook

The company said it expected 2013 revenues to grow between 6% and 10%; the market had been expecting high teens.

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