Bangalore: Infosys Technologies beat expectations with a 30% rise in quarterly profit helped by a weaker rupee, but cut its forecast for the full year citing global financial crisis, knocking its shares down 17%.
India’s No. 2 information technology services exporter said it would not increase its takeover offer for British Consultancy Axon, after smaller rival HCL Technologies trumped its bid offering 8.3% more.
Click here to read highlights of the results
Infosys forecast revenue for the year to March would grow 13.1-15.2% in dollar, down from July’s forecast of 19-21%. It also cut earnings per share to $2.24 from $2.32-$2.36 projected in July.
“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,” Chief Executive S. Gopalakrishnan said.
Shares in Infosys slumped to their lowest in nearly 3-“ years to Rs1,040 in a Mumbai market that tumbled more than 9% early.
Average billing rates fell 0.3% in the September quarter, but Infosys is not seeing any big project cancellations and expects optimistic about the medium- to long-term business growth, Gopalakrishnan said.
“In the last four weeks, we have seen lot of changes in the market place....” he said. “We want to be cautious and that is why we have revised our guidance.”
India’s export-driven software service firms, who were used to a scorching pace of growth, have been badly hit by a slowdown in their key United States market, which contributes more than half their revenue, and the spreading global financial turmoil.
The company, which develops applications, designs supply chains and offers back-office services, said on Friday consolidated net profit rose to Rs1432 crore ($291 million) in July-September, its fiscal second quarter, from 1100 crore reported a year ago.