Infosys Q2 revenues decline, revises FY outlook

Revenues improve on a sequential basis

Infosys Technologies, India's second largest software services exporter, has reported revenues of $1.15 billion for the second quarter ended September 30, 2009, a decline of 5.1% compared to the same period in the previous year. The revenues showed a growth of 2.9% on a sequential basis.

Net income after tax for the quarter was $317m, showing a decline of 0.9% on year-on-year basis. However, according to Indian GAAP, net profit after tax for the quarter was INR15.4 billion, reporting a growth of 7.5% on year-on-year basis.

Operating profit before tax and minority interest for the quarter was INR17.01 billion compared to INR16.17 billion in the same quarter of the prior year.

S Gopalakrishnan, CEO and managing director of Infosys, said: “In the second quarter, the business climate has improved. Clients are now looking to invest in a few strategic initiatives and relationships to maximise value from opportunities when the economic downturn ends.”

The company said that it expects the consolidated revenues for the quarter ending December 31, 2009, to be in the range of $1.16 billion and $1.17 billion, reflecting a year-on-year decline of 1.4% to 0.5%.

For fiscal year ending March 31, 2010, consolidated revenues are expected to be in the range of $4.6 billion and $4.62 billion, reflecting a year-on-year decline of 1.3% to 1%.

V Balakrishnan, chief financial officer of Infosys, said: “The global currency markets continue to be extremely volatile, even though we have seen some stability in the rupee against the US dollar this quarter. We continue to focus on high quality growth with superior margins. Our balance sheet has been further strengthened with cash and cash equivalents reaching $2.8 billion.”

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