Written by: ENS Economic Bureau
2 min readBangaloreOct 13, 2012 01:41 AM IST
First published on: Oct 13, 2012 at 01:41 AM IST
It major Infosys on Friday maintained its annual revenue growth outlook at a minimum of 5 per cent,failing to cheer markets and break its spell of sluggish growth.
The firm barely met street expectations with a 3.5 per cent sequential rise in consolidated net profit for the September quarter,dragging its shares on the BSE down by 5.36 per cent. The earnings provided a clear pointer to fact that the sectors key markets the US and Europe were still unstable,resulting in customers keeping their budgets on a tight leash.
The 3.5 per cent sequential rise in net profit translated into a sum of Rs 2,369 crore compared with Rs 2,289 crore posted in the previous quarter. The company reported a 24.3 per cent year-on-year increase in consolidated net profit,with revenues rising 2.5 per cent sequentially to Rs 9,858 crore. Year-on-year revenue was up 21.7 per cent. Analysts were expecting a 150-basis points increase in the companys guidance following its recent acquisition of Swiss consulting firm Lodestone,but the management said that was not factored in while computing the forecast.
The Lodestone deal is not closed. We are still waiting for some clearance. It will enter into our guidance in the current quarter. We will change our guidance next quarter, said SD Shibulal,CEO and managing director,Infosys.
During the June quarter,the tech major had cut its forecast down to a meagre 5 per cent rise in dollar revenue for FY13 against an 8-10 per cent increase set at the beginning of the financial year.
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