Infosys profit dips 2.3% to Rs 2,316 cr, issues 8-10% $ guidance

Infosys announced a 2.3 percent quarter-on-quarter drop in fourth-quarter (January-March) net profit to Rs 2,316 crore.Revenues also declined 4.8 percent to Rs 8,852 crore in the same period.

 Infosys profit dips 2.3% to Rs 2,316 cr, issues 8-10% $ guidance

For the full year ending March, the company posted a net profit of Rs 8,316 crore, up from Rs 6,8823 crore. Reuters

More importantly, the company announced an 8-10 percent dollar revenue guidance for the financial year ending March 2013, which is lower than industry body Nasscom's estimate of 11-14 percent.

Infosys estimated full-year revenues in the range of $7,553 million to $7,692 million.

In dollars, revenues for the March-ending quarter clocked in at $1,771 million, down 1.9 percent from the previous quarter. Net profit grew 1.1 percent to $463 million.

On CNBC TV18, experts have already started voicing disappointment over the results. The stock plunged by Rs 300 in opening trades and is currently trading below Rs 2,500, down 9 percent.

The EBIT (earnings before interest and tax) margin came in at 29.9 percent, in line with market expectations, while earnings per share (EPS) for the January-March quarter came in at $0.80.

However, EPS for the first quarter (April-June) of the current financial year has been lowered by 9 percent from the previous quarter to $0.73. The company also issued an EPS guidance of $3.12-$3.17 for the financial year, which is a growth of 4-5.7 percent.

For the full year ending March, the company posted a net profit of Rs 8,316 crore, up from Rs 6,823 crore a year ago. Full-year revenues rose to Rs 33,734 crore from Rs 27,501 crore.

The company also announced a special dividend of Rs 10 per share to celebrate 10 years of its BPO operations, and a final dividend of Rs 22 per share.

"The year ahead looks challenging for the IT services industry, with slow recovery in the global markets," said S D Shibulal, CEO and managing director in a press release.

The company, along with its subsidiaries, added 52 clients during the quarter. It added 10,676 employees at the gross level and 4,906 at the net level. Infosys had 1,49,994 employees at the end of 31 March, 2012.

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Updated Date: Dec 20, 2014 07:45:32 IST