Infosys' Q1 consolidated net up 4%

Infosys Technologies, on Friday, announced its first quarter results. It has posted 4.24 per cent growth in its first quarter consolidated net profit at Rs 1302 crore (Rs 13.02 billion) against Rs 1249 crore (Rs 12.49 billion) posted in the previous quarter.

While net profit is above market expectations, sales are in line with estimates.

Consolidated net sales shot up by 6.87 per cent at Rs 4854 crore (Rs 48.54 billion) from Rs 4542 crore (Rs 45.42 billion) QoQ.

Earning per share for the first quarter stood at Rs 22.71 versus Rs 21.79.

Highlights

Consolidated results for the quarter ended June 30, 2008

• Income was Rs. 4,854 crore for the quarter ended June 30, 2008; YoY growth was 28.7%
• Net profit after tax* was Rs. 1,302 crore for the quarter ended June 30, 2008; YoY growth was 20.7%
• Earnings per share* increased to Rs. 22.75 from Rs. 18.89 in the corresponding quarter in the previous year; YoY growth was 20.4%

* The net profit for the quarters ended June 30, 2008 and June 30,2007 includes a reversal of tax provisions amounting to Rs. 31 crore and Rs. 51 crore respectively. Excluding this reversal, the earnings per share for the quarters ended June 30, 2008 and June 30, 2007 would have been Rs. 22.20 and Rs. 18.00 respectively, resulting in a YoY growth of 23.3%.

Others

• 49 new clients were added during the quarter by Infosys and its subsidiaries
• Gross addition of 7,182 employees (net 3,192) for the quarter by Infosys and its subsidiaries
• 94,379 employees as on June 30, 2008 for Infosys and its subsidiaries

"Although the global economic environment continues to remain uncertain and could impact IT spending in the short term, we see several opportunities for growth as customers relentlessly focus on improving efficiency," said S Gopalakrishnan, CEO and managing director.

Business outlook

The company's outlook (consolidated) for the quarter ending September 30, 2008 and for the fiscal year ending March 31, 2009, under Indian GAAP and US GAAP, is as follows:

Outlook under Indian GAAP - consolidated

Quarter ending September 30, 2008**

• Income is expected to be in the range of Rs. 5,229 crore and Rs. 5,272 crore; YoY growth of 27.4% - 28.4%
• Earnings per share is expected to be in the range of Rs. 23.52 and Rs. 23.95; YoY growth of 22.1% - 24.4%

Fiscal year ending March 31, 2009**

Income is expected to be in the range of Rs. 21,278 crore and Rs. 21,622 crore; YoY growth of 27.5% - 29.5%

Earnings per share*** are expected to be between Rs. 99.34 and Rs. 101.06; YoY growth of 21.9% - 24.0%

** Conversion 1 US$ = Rs. 43.04
*** Including tax reversal of Rs. 31 crore in fiscal 2009 and Rs. 121 crore in fiscal 2008 respectively.
Excluding the tax reversal the earnings per share are expected to be between Rs. 98.79 and Rs. 100.51 for the year ending March 31, 2009; YoY growth of 24.4% - 26.6%.