MUMBAI: IT bellwether Infosys Technologies on Thursday reported 14.17 per cent growth in consolidated net profit at Rs 1,780 crore for the third quarter ended December 31, 2010. The company had a net profit of Rs 1,559 crore in the December quarter of the previous fiscal (2009-10), Infosys said in a filing to the Bombay Stock Exchange.
The consolidated revenue of the country's second largest software exporter rose to Rs 7,106 crore against Rs 5,741 crore over the year-ago period.
"The weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth. We are closely working with our clients, as they fine tune their strategies for the future," Infosys CEO and MD S Gopalakrishnan said.
For the Q4 ending March 31, the company expects the revenues to be in the range of Rs 7157- Rs 7,230 crore, while it anticipates the revenue for the full year ending March 31, 2011, in the range of Rs 27,408- Rs 27,481 crore.
Besides, the company has appointed R Seshasayee as an Additional Director with immediate effect. The appointment is subject to the shareholders approval.
On the standalone basis, the company has reported 11.55 per cent growth in its net profit at Rs 1,641 in Q3 2010-11, over the same period in the previous fiscal.
Income rose to Rs 6,534 crore in the October-December quarter, against Rs 5,335 crore in the same period last fiscal.
Here are what analysts had to say about Infosus Q3 results:
ADRIAN LIM, FUND MANAGER, ABERDEEN GLOBAL INDIAN EQUITY FUND, SINGAPORE:
"(Results are) fair in view of the challenges that the sector has to deal with."
"Indian outsourcing continues to provide a competitive product. It has very strong execution track record and ability; and pricing positions it as a valuable resource to its customers. Infosys is also one of the strongest operators here."
"(Rupee volatility) is a short-term issue, not a large concern."
TARUN SISODIA, HEAD OF RESEARCH, ANAND RATHI FINANCIAL SERVICES:
"The results are marginally lower and guidance doen not reflect growth rates that the market expected. But I would not be concerned as they normally surpass their guidance."
"I wouldn't say these results will reflect in the rest of the IT sector earnings . We continue to maintain that investors should continue to remain exposed to sector stocks."
