Infosys Q3 net profit down; raises forecast for 2010

Infosys Q3 net profit down; raises forecast for 2010

Mysore: India’s second largest software services firm, Infosys Technologies Ltd said third quarter (Q3) profit dropped 3.6% % to Rs1582 crore and raised forecast for the year ahead on improved business from customers in the US, which is seeing an economic revival

Revenue for the quarter dropped 0.8% to Rs5,741 crore year-on-year.

Infosys raised its full year guidance to Rs22,473 crore and Rs22,519 crore, an yearly growth of 1.2% to 1.7%. The results, which was better than expected by analysts, lifted IT stocks with the IT index increasing by 3.3% or 159.50 points in early trade on the benchmark Bombay Stock Exchange. Infosys stock went up 3.4% or Rs84.65 at 9:30am.

“Global economic recovery seems to be led by the US and the financial services," said S Gopalakrishnan, chief executive officer at Infosys said in a statement. “Even though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery"

The US accounts to nearly 60% of India’s software exports.

A Mint analysis of forecasts by eight brokerages showed Infosys’ average profit of Rs1,471 crore on sales of Rs5,585 crore.

Infosys added 32 new clients. It added 4,429 net employees to take its total strength to 1,09,882 employees.

“The contribution to our revenues from our top ten clients grew by 12.2% during the quarter. Our clients are taking decisions much faster," said S D Shibulal, chief operating officer. “

“The rupee appreciated by 3.7% during the quarter," said V. Balakrishnan, chief financial officer. “We maintained our margins while our cash and cash equivalents reached $3.1 billion."