Infosys Technologies recorded a 2.9% q-o-q fall in Q1FY2010 topline in Rupee terms (12.7% y-o-y growth).
As per International Financial Reporting Standards (IFRS), sequential Dollar Revenues were flat (2.9% y-o-y de-growth), while in constant currency terms, the company clocked a 1.9% q-o-q de-growth (2.6% y-o-y growth).
Infosys out-performed its guidance in US Dollar terms on a reported as well as constant currency basis. In Rupee terms, the company hit nearly the upper end of its guidance.
The fall in Rupee Revenues as against a marginal increase in Dollar revenues was owing to the lower Rupee-Dollar rate (down 3% qoq, Rs48.77 per Dollar v/s Rs50.27 in 4QFY2009).
However, on a y-o-y basis, Rupee revenues grew as against a fall in Dollar revenues on account of the higher exchange rate (higher by 16%, Rs42.03 in Q1FY2009).
“The results were above our estimates. Revenues were higher than what we had anticipated and so were the EBIDTA margins. The improvement in margins came in largely due to the reduction in number of employees q-o-q. The sequential drop in number of employees came in after several quarters for Infosys and was a surprise. The company has probably aligned costs to the expected revenue outlook,” said Dipen Shah, IT analyst and Vice President –PCG (research), Kotak Securities.
“We believe that the change in the USD – based guidance and the INR – based guidance came in largely due to the currency movements,” Shah added.
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