Software major Infosys has managed to deliver a strong result despite a slowing US economy and a strengthening rupee. The company recorded a net profit of Rs 4,659 crore for the year ended March ’08, up 20.8 per cent over the year before. The company has recorded consolidated sales of Rs 16,692 crore, up 20.1 per cent over FY07.
More worrying however, is the fact that the company has given a lower earnings forecast for the coming year. The number of people it proposes to hire has also come down. For the coming year, Infosys has projected a top-line growth of 19.2 per cent to 21.1 per cent while profits are projected to increase by 16.3 per cent to 18.3 per cent. The company expects to touch revenues of $5 billion in FY09.
"Infosys managed to meet the earnings forecast for last year despite taking a hit of Rs 1,000 crore due to unfavourable exchange rates," said Mr Apurv Shah, research head, Prabhudas Lilladhar. "The outlook is a mix of cautious optimism. For the next one or two quarters, project flow will be slower as there is greater scrutiny on expenses during a slow phase," he added.
Going forward, the company expects things to get back to normal in a few months time. "The company is confident about the operating environment. They feel that new projects could get delayed over the next 4 to 5 months, but there will be no project cancellations," said Mr Gaurang Shah, IT analyst with Asit C Mehta Securities.
Apart from a turnaround in the US economy, exchange rates are also expected to be stable in the current fiscal due to weaker capital markets. Infosys has declared a final dividend of Rs 7.25 per share and a special dividend of Rs 20 per share. Together with the interim dividend paid out, this takes the total payout by the company to Rs 33.25 per share.
Apr 16, 2008
Did you know?
* The owl is the only bird to drop its upper eyelid to wink. All other birds raise their lower eyelids.
* The reason honey is so easy to digest is that it’s already been digested by a bee.
* Roosters cannot crow if they cannot extend their necks.
* The colour blue has a calming effect. It causes the brain to release calming hormones.
* Every time you sneeze some of your brain cells die.
* Your left lung is smaller than your right lung to make room for your heart.
* The verb “cleave” is the only English word with two synonyms, which are antonyms of each other: adhere and separate.
* The reason honey is so easy to digest is that it’s already been digested by a bee.
* Roosters cannot crow if they cannot extend their necks.
* The colour blue has a calming effect. It causes the brain to release calming hormones.
* Every time you sneeze some of your brain cells die.
* Your left lung is smaller than your right lung to make room for your heart.
* The verb “cleave” is the only English word with two synonyms, which are antonyms of each other: adhere and separate.
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