Infosys Q1 results in line with expectations

Infosys stocks prices will not move significantly, says experts.

 

 

Not a lot has changed for Infosys in Q1. It is in keeping with market expectations and marginally better than their guidance. Consolidated revenue is at Rs 7485 cr and dollar revenue guidance has not changed much and stands at $1.73 -1.75 billion.
 

The Group has posted a net profit of Rs 17,220 million for the quarter ended June 30, 2011 as compared to Rs 14880 for the quarter ended June 30, 2010. Total Income has increased from Rs 64,370 million for the quarter ended June 30, 2010 to Rs 79,280 million for the quarter ended June 30, 2011.
Consolidated results under IFRS for the quarter ended June 30, 2011
- Revenues were Rs7,485 crore for the quarter ended June 30, 2011;
QoQ growth was 3.2%; YoY growth was 20.8%
- Net profit after tax was Rs1,722 crore for the quarter ended June 30, 2011;
QoQ decline was 5.3%; YoY growth was 15.7%
- Earnings per share (EPS) was Rs 30.14 for the quarter ended June 30, 2011;
QoQ decline was 5.3%; YoY growth was 15.7%

Others
- 26 clients were added during the quarter by Infosys and its subsidiaries
- Gross addition of 9,922 employees (net addition of 2,740) for the quarter by Infosys and its subsidiaries
- 1,33,560 employees as on June 30, 2011 for Infosys and its subsidiaries
The complete result is here: Infosys Q1 Results.
Kris Gopalakrishnan:
We have seen overall growth of 3.5% YOY, 12000 recruitments, good customer traction, reorganisation is behind us and onsite volume growth 6.8%. We're changing the way we do business with Europe. Our deal pipeline is strong.
Bala:
We recruited 9,900 people, the full impact of wage increase has come into play.  We expect margins can decline by 2.5%,  and the net impact's hardly 4% as a result of the currency fluctuations. We are keeping Y-O-Y revenue guidance at 18-20% which is better than before. For Q2, Infosys expects 5% revenue growth. Customers are cautious about spending but are not reducing budgets as the economic conditions are uncertain.  So we are keeping the guidance same and we expect even growth across quarters.
Shibulal:
New strategic results will yield market-leading results in the medium term that is 3-5 years, but immediate results will show up in 2-3 quarters.