Infosys Q3 net up 25%, beats forecast

Infosys Q3 net up 25%, beats forecast
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First Published: Fri, Jan 11 2008. 12 40 PM IST
Updated: Fri, Jan 11 2008. 12 40 PM IST
Bangalore: Infosys Technologies Ltd, India’s No. 2 software services exporter, beat forecasts with a 25.2% rise in quarterly profit on Friday, 11 January 2008, bolstered by increased outsourcing demand from overseas clients looking to cut costs.
Infosys, which is also listed on Nasdaq, said net profit rose to Rs12.31 billion ($313.23 million) in the fiscal third quarter ended 31 December, from Rs9.83 billion a year earlier.
A Reuters poll of 13 brokerages had forecast Bangalore-based Infosys, whose clients include ABN AMRO and Goldman Sachs, would post a net profit of Rs11.77 billion on revenue of Rs43.26 billion.
A vast pool of English-speaking workforce and relatively cheaper wages have helped services firms to grab outsourcing jobs from western clients looking to reduce costs, but a stronger rupee, rising pay and a slowing US economy are big worries.
Shares in Infosys, the worst performer in the benchmark BSE index in 2007, fell 6.8% in October-December while the sector index slipped 2.1%.
The BSE index had risen 17% in the quarter.
Infy settles issue with California Labour Standards Div
Bangalore: Software services firm Infosys Technologies said on 11 January it has voluntarily settled the issue of payment of overtime to certain employees in California for a total amount of 26 million dollars.
The company has settled the issue with the California Division of Labour Standards Enforcement (DLSE).
“The payment pertains to the last three years and such back wages will be paid to employees in due course,” the Bangalore-headquartered, NASDAQ-listed firm said in a statement. PTI
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First Published: Fri, Jan 11 2008. 12 40 PM IST