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For the first quarter, Infosys’ net profit jumped 32.9%. But it failed to meet market expectations on its dollar revenues and also cut its FY dollar earning forecast, putting a cloud over the entire software sector
Software giant Infosys, which came out with positive numbers for the first quarter of the current fiscal on Thursday, failed to impress the stock market. In early trading Infosys tumbled 9.4% to Rs2,233.95 on the BSE as the company failed to meet its guidance on dollar revenues in Q1 and also cut its dollar earning forecast for FY13.
Infosys, India’s second largest software company reported a 32.9% jump in its first quarter net profit to Rs2,289 from Rs1,722 crore while its total revenues rose 28.5% to Rs9,616 crore. In dollar terms, the company’s revenue stood at $1,752 million against $1,671 million in the same quarter last year, up 4.8%.
Though the company exceeded its revenue forecast in rupee terms, it failed to meet dollar revenue guidance of $1,771 million to $1,789 million for the June quarter. It expected its rupee revenues to be in the range of Rs9,011 crore to Rs9,100 crore for April-June 2012.
In Q1, rupee revenues of software companies are expected to rise marginally on the back of depreciating rupee.
Infosys did not give a revenue guidance for July-September quarter but revised its annual forecast for FY13 to be at least Rs40,364 crore (year-on-year growth of 19.7%) against previous guidance of Rs38,431 crore-Rs39,136 crore.
However, in dollar terms it has slashed its forecast of revenue to be at least $7.34 billion, a growth of 5% y-o-y, against the earlier guidance of $7.55 billion-$7.69 billion, a growth of 8%-10%.
This is much lower than Nasscom’s growth estimate of 11%-14% for the industry in FY 2013.
At 11.10am, Infosys was trading 8.6% down at Rs2253 on the BSE, while the benchmark Sensex was down 1% to 17,304.
Foreigners: Foreign institutional investors were net buyers of stocks (Rs742.72 crore). They bought shares worth Rs16,814.23 crore.