Infosys Q2 net up at Rs 1,432 cr; beats forecast

Software major Infosys Technologies on 10th October announced a consolidated net profit of Rs 1,432 crore (Rs 14.32 billion) for the second quarter ended on September 30, a 30.18 per cent growth over the corresponding period a year-ago.

The firm had reported a net profit of Rs 1,100 crore in the September quarter last fiscal, Infosys said in a filing to the Bombay Stock Exchange.

Infosys lowered its dollar earnings forecast for the year, on anticipation of slowing demand from financial services firms, which account for just over a third of its business.

"We have revised our US dollar revenue guidance to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar," said S Gopalakrishnan, CEO and managing director. "The challenging environment provides interesting opportunities for transformational service providers like us."

In dollar terms, earnings for the quarter ended September 30 rose 19 per cent to $1.2 billion. Profits for the quarter were $525 million, up from $431 million during the same period last year.

Highlights Consolidated results for the quarter ended September 30, 2008

Income was Rs. 5,418 crore for the quarter ended September 30, 2008; YoY growth was 32%

Net profit after tax was Rs. 1,432 crore for the quarter ended September 30, 2008; YoY growth was 30.2%'

Earnings per share increased to Rs. 25.02 from Rs. 19.26 in the corresponding quarter in the previous year; YoY growth was 30%

Interim dividend of Rs. 10 per share ( 200% on par value of Rs. 5 per share) compared to Rs. 6 ( 120% on par value of Rs. 5 per share) for the corresponding period in the previous year

Others

40 new clients were added during the quarter by Infosys and its subsidiaries

Gross addition of 10,117 employees (net 5,927) for the quarter by Infosys and its subsidiaries

1,00,306 employees as on September 30, 2008 for Infosys and its subsidiaries

Outlook under Indian GAAP - consolidated Quarter ending December 31, 2008*

Income is expected to be in the range of Rs. 5,519 crore and Rs. 5,730 crore; YoY growth of 29.2% � 34.2%

Earnings per share is expected to be Rs. 26.63; YoY growth of 23.6%**

Fiscal year ending March 31, 2009*

Income is expected to be in the range of Rs. 21,309 crore and Rs. 21,731 crore; YoY growth of 27.7% � 30.2%

Earnings per share*** is expected to be Rs. 101.06; YoY growth of 24%

* Conversion 1 US$ = Rs. 46.97

** Including tax reversal of Rs. 50 crore for the quarter ended December 31,
2007. Excluding the tax reversal the YOY growth is expected to be 28.9%

*** Including tax reversal of Rs. 31 crore in fiscal 2009 and Rs.121 crore in fiscal 2008 respectively. Excluding the tax reversal the earnings per share is expected to be Rs.100.51 for the year ending March 31, 2009; YoY growth of 26.6%

Outlook under International Financial Reporting Standards# Quarter ending December 31, 2008

Consolidated revenues are expected to be in the range of $ 1,175 million and $ 1,220 million; YoY growth of 8.4% � 12.6%; in constant currency 11.9% � 16.2%

Consolidated earnings per American Depositary Share are expected to be $ 0.57; YoY growth of 5.6%@

Fiscal year ending March 31, 2009

Consolidated revenues are expected to be in the range of $ 4.72 billion and $ 4.81 billion; YoY growth of 13.1% � 15.2%; 16% � 18% in constant currency

Consolidated earnings per American Depositary Share@@ are expected to be $ 2.24; YoY growth of 10.3%

# Exchange rates considered for major global currencies: AUD / USD 0.81; GBP / USD 1.86; Euro / USD 1.36
@ Including tax reversal of $ 13 million for the quarter ended December 31, 2007. Excluding the tax reversal the YOY growth is expected to be 9.6%.
@@ Including tax reversal of $ 7 million in fiscal 2009 and $ 31 million in fiscal 2008 respectively. Excluding the tax reversal, the earnings per share is expected to be $ 2.23 for the year ending March 31, 2009; YoY growth of 12.6%

"We benefited from the depreciation of the rupee against the US dollar during the quarter which was partially offset by the sharp appreciation of the US dollar against all other major currencies," Infosys chief financial officer V Balakrishnan said.

The consolidated total income rose 28.73 per cent to Rs 5,484 crore (Rs 54.84 billion), from Rs 4,260 crore (Rs 42.6 billion) in the same period in FY'08.

The board has declared an interim dividend of Rs 10 on shares of face value of Rs 5.

"Our liquidity position continues to be strong with cash and cash equivalents reaching USD 1.9 billion," Balakrishnan added.

Awards and recognition

Infosys won the 2008 RBS Supplier Excellence Award for Global Contribution which acclaims operational and delivery excellence as well as effective account management of suppliers operating across multiple geographies.

This award recognised Infosys' valued contribution to the ABN AMRO integration.

Sears Holdings Corporation chose it as a Partner in Progress for the second consecutive year.

Forbes magazine listed Infosys among its Asian Fab 50.

Expansion of services and significant projects

Infosys launched ShoppingTrip360, an innovative solution for retailers and consumer packaged goods companies.

Infosys' patent-pending technology platform offers real-time visibility into shopper and shelf activity through a network of wireless sensor-based applications.

Companies across the world continued to entrust Infosys with the responsibility of transforming their businesses, technology, and operations.

"We added 40 clients during the quarter," said S D Shibulal, chief operating officer. "Despite adverse market conditions, our pricing remained stable during the last quarter."

Finacle

Finacle Universal Banking Solution has continued its strong momentum, adding four customers. Two of them are from Europe, one from the Americas, and one from the Asia Pacific region. In addition, three banks across the globe went live on Finacle this quarter.

Infosys BPO

Infosys BPO won four clients this quarter. It is helping a subsidiary of a leading cable television company to create a shared services center across markets. A global telecommunications provider engaged Infosys BPO for a Legal Process Outsourcing project.

Process innovation

During the quarter, Infosys applied for an aggregate of 22 patents in the US and India. With this, Infosys has an aggregate of 171 patent applications (pending) in both countries and has been granted two patents by the United States Patent and Trademark Office.