Friday, January 14, 2011
INFOSYS TECHNOLOGIES = Q3 FY 2011 RESULT = Q/E DEC 2010 = ON PAR WITH GUIDANCE = GOOD ADDITION OF CLIENTS = FAIR GUIDANCE FOR Q4 = ON GOOD GROWTH PATH
INFOSYS TECHNOLOGIES LTD
RESULTS FOR Q3 FY 11
INFOSYS has declared its results for the quarter ending 31st,Dec,2010.
On a Consolidated Basis -
Ø Its Revenues were Rs.7,106 Cr for Q/e Dec,2010. The QOQ Growth was 2.3% while the YOY Growth was 23.8%
Ø Net Profit after Tax was Rs.1,780 Cr, for the Q3. The QOQ Growth was 2.5%, while the YOY Growth was 14.2%.
Ø EPS was Rs.31.15 for the Qtr. The QOQ growth was 2.4%, while the YOY Growth was 14%.
RESULTS IN NUMBERS :
ITEM : Q2 (Rs) : Q3(Rs): % change: Q3 FY10: %Change
Revenue : 6,947 : 7,106: 2.28% : 5,742 : 23.8%
OPT : 2,098 : 2,147 : 2.3% : 1,784 : 20.3%
NPT: 1,737 : 1,780 : 2.5% : 1,559 : 14.2%
EPS : 30.41 : 31.15 : 2.4% : 27.33 : 14%
Ø 40 CLIENTS Were added during the quarter.
Ø 11,067 was the Gross addition of employees and 5,311 was the Net addition.
Ø Total number of employees as on 31.Dec,2010 was 1,27,779.
FOR Q/E 31.03.2011 :
Ø Revenue – expected in the range of Rs.7157 cr - Rs.7230 cr. YOY GROWTH expected is 20.4% -21.6%
Ø EPS – in the range of Rs.31.06 - Rs.31.28. YOY growth of 10.8%-11.6%.
For FISCAL YEAR 3NDING 31 MARCH 2011:
Ø REVENUE : Rs.27,408 cr – Rs. 27,481 cr. YOY GROWTH OF 20.5%-20.8%
Ø EPS = RS.118.68 – RS.118.90; YOY GROWTH OF 8.9%-9.1%
What S Gopalakrishnan, CEO and MD, says :-
… weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact Industry Growth. We are closely working with our clients as they fine-tune their strategies for the future.
….There is a seasonality in the spending habit of clients as they tend to spend most part of their budgets in the early part of the year. In spite of that, we have seen a satisfactory quarter which is reflected in the company’s overall performance.
….The growth was led by the BFSI (banking, financial services and insurance) segment, followed by manufacturing and retail. Telecom still saw a bit of sluggishness, but contributed 1 Rs 5 per cent to revenues during the quarter.
…despite Q3 and Q4 being the softer quarters historically, the company has achieved all-round growth while managing to tide over the macro-economic environment and rupee volatility.
INFOSYS is perhaps the only Indian company which is issuing such future Guidance, after taking into account all Potential factors. This reflects the company’s confidence on the stability of its future growth prospects.
In current quarter also, the results are very good considering its earlier guidance for the quarter. The IT Biggies like INFOSYS and TCS are all broad-basing their clientele, across all geographies now. But, with Europe still not fully out of the woods, a cautious guidance was only to be expected.
Despite this, the performance for Q3 and the outlook projected for Q4 must be said to be creditable.
The addition of 40 clients in the quarter is a good achievement. Finnacle itself attracted 6 clients during the quarter.
Indian IT Biggies are slowly focusing on building such standard Product Platforms to build their long term clients. More such standard products will go a long way, in boosting their long term stable revenue.
Since, quarterly guidance is issued at the beginning of the quarter, when most factors are known (except exchange rate volatility) not much variation from the guidance need be anticipated by the Market. What can however move the guidance a little upwards is a significant upturn in European and US economies.
As it is, a YOY growth forecast in revenues of 20.8% is a good growth parameter. Likewise is the EPS growth forecast of around 9%. This EPS guidance can change upward with economic upturn when rates with each client are re-negotiated.
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