Infosys Ltd on Friday reported a 27.4% increase in consolidated net profit for the fourth quarter ended March 31 compared to the year-ago period,meeting forecasts.
The company’s full year revenue guidance of 8-10%,however,was highly disappointing dragging the share price down by nearly 10% in early morning trade.
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The company posted net profit of Rs 2316 crore for the quarter as compared to Rs 1818 crore in the corresponding period last year. Revenue was up 22.1% at Rs 8852 crore as against Rs 7250 crore a year ago,a company press release said.
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For the full year ending March 31,the company’s net profit was up by 21.88% at Rs 8316 crore as against Rs 6823 crore registered the previous year . Revenue went up by 22.7% to Rs 33,734 crore as against Rs 27501 crore last fiscal.
Sequentially,the fourth quarter saw a profit decline 2.4%,in line with analysts’ expectations.
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We had a very difficult quarter with revenues declining sequentially. Our focus on high quality growth coupled with strong financial discipline helped us to deliver on EPS guidance in US dollar terms, said V. Balakrishnan,Member of the Board and Chief Financial Officer. The global currency market volatility continues to be a challenge for the industry.
Infosys has forecast a dollar revenue guidance of 8-10% for FY13,lower than Nasscom’s growth projection of 11-14% for the industry. Analysts were expecting Infosys’ revenue forecasts for the current fiscal to be in lower double digits,in line with Nasscom’s estimates. In rupee terms,the company forecast revenue guidance of 13.9% to 16% for the current fiscal.
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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,Infosys. We are executing on our Infosys 3.0 strategy which is meant to deliver high quality growth in the medium to long term. We are making investments and have put in place a structure to deliver on this strategy.
The company’s shares were trading at Rs 2492,down 9.38% around 10 am on Friday.