Bangalore, Oct 9 (Inditop.com) Sailing through tough times, Infosys Technologies Ltd has again beaten revenue guidance for the second quarter (July-September) of this fiscal (2009-10) by posting Rs.55.85 billion (Rs.5,585 crore) as against the projected Rs.53.65 billion (Rs.5,365 crore).
“The business climate has improved in the second quarter. Clients are now looking to invest in a few strategic initiatives and relationships to maximise value from opportunities when the economic downturn ends,” Infosys Chief Executive S. Gopalakrishnan said in a statement Friday.
On sequential and annualised basis, the consolidated income is marginally up by 2.1 percent and 3.1 percent respectively, as per the Indian accounting standard.
The IT bellwether, however, projected an average revenue guidance of Rs.54.52 billion (Rs.5,452 crore) for the third quarter (October-December) of this fiscal (FY 2010), which will be a marginal decline of 5.8 percent year-on-year (YoY) and 2.4 percent sequentially (quarter-on-quarter).
For the entire fiscal (FY 2010), consolidated income is expected to be Rs.220 billion, a marginal increase of 1.5 percent YoY.
As per the International Financial Reporting System (IFRS), the consolidated revenue for the third quarter (Q3) is projected to be $1.16 billion, a decline of 0.95 percent YoY and for entire fiscal $4.6 billion, a decline of one percent YoY.
“The pricing environment seems to have stabilised. There is increasing traction for our system integration services due to mergers and acquisitions, especially in the financial services agreement,” Chief Operation Officer S.D. Shibulal said.
As per the IFRS, consolidated income for the second quarter declined by 5.1 percent YoY to $1.15 billion due to rupee appreciating to Rs.47 from Rs.47.91 per US dollar during the quarter under review.
The company’s net profit for the quarter under review (Q2) grew marginally by 7.5 percent YoY to Rs.15.40 billion (Rs.1,540 crore) as per the Indian accounting standard.
As per the IFRS, the global software major’s net income declined by 0.9 percent to $317 million in the second quarter.
“The global currency markets continue to be extremely volatile though we have seen some stability in the rupee vis-�-vis the US dollar in the second quarter,” Chief Financial Officer V. Balakrishnan said.
Operating profit grew by 7.7 percent YoY to Rs.19.33 billion (Rs.1,933 crore) before depreciation and by 5.2 percent to Rs.17.01 billion (Rs.1,701 crore) before tax and interest.
The company declared an interim dividend of Rs.10 per share or 200 percent on par value of Rs.5 per share for the first six months (April-September) of this fiscal
The interim dividend to the promoters as well as investors is, however, the same as in the corresponding period of last fiscal (2008-09).
The company has earmarked Rs.5.73 billion (Rs.573 crore) for the interim dividend payout in the balance sheet. The dividend tax outgo will be Rs.970 million (Rs.97 crore).
“Our balance sheet has been strengthened with cash reserves of Rs.137.96 billion ($2.8 billion) by the end of second quarter as against Rs.88.58 billion,” Balakrishnan pointed out.
The company and its subsidiaries added 35 clients during the quarter as against 27 in the previous quarter (April-June) and 40 in the second quarter a year ago.
The number of active clients by second quarter declined to 571 from 579 in the like period a year ago and marginally up by two sequentially.
