Infosys Q1 net profit up 3.7 per cent, dollar revenue guidance unchanged

Infosys, country's second-largest software services exporter, posted a 3.7 per cent year-on-year increase in its first-quarter net profit, matching estimates, after contract wins and foreign exchange gains boosted earnings. This is a 0.8% quarter-on-quarter decline.

Consolidated net profit for the quarter ended June 30 rose to Rs 2374 crore from Rs 2289 crore in the same year-ago period, Bangalore-based Infosys said on Friday. The Q1 revenues came in at Rs 11,267 crore, witnessing a 17.2% year-on-year and 7.8% quarter-on-quarter growth.

Infosys left the FY 14 dollar revenue growth guidance unchanged. Infosys also maintained its forecast for 6-10 per cent revenue growth for the current 2013/14 financial year. The company's outlook (consolidated) for the fiscal year ending March 31, 2014, under IFRS is 13% to 17% revenue growth.

At 09:39 AM stock in Infosys was trading at Rs 2832.80, up 12.23% on the Bombay Stock Exchange. It hit an intra-day high of Rs 2905 and a low of Rs 2779.40.

In US dollar terms, its consolidated net profit rose marginally by 0.5 per cent to $418 million in the April-June quarter this fiscal from $416 million in the same quarter of 2012-13. Its consolidated revenues rose by 13.6 per cent to $1.99 billion against $1.75 billion in the same period last year.

Speaking on the Q1 numbers SD Shibulal, CEO and Managing Director of Infosys said, "Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year."

"We maintained our margins and continued making investments in the business," said Rajiv Bansal, Chief Financial Officer. "We have announced compensation increases for FY 14 effective July which will affect our margins in the future quarters.

Infosys' top client contributed 3.9% of the company's total revenues during the first quarter. In the previous quarter, its top client contributed 3.6% of the total revenues. Infosys said it had 836 active clients during the first quarter. Infosys and its subsidiaries added 66 clients during the quarter.

Customers in the banking, financial services and insurance sectors contributed 33.7% to Infosys revenues during the first quarter. It's clients in manufacturing contributed 22.5% of the overall sales.

During the first quarter, Infosys applied for 18 unique patent applications in India and the U.S. With this, it has 528 patent applications undergoing various stages in the patent approval process in India, the U.S. and other jurisdictions, has been granted 106 patents by the United States Patent and Trademark Office and three patents by the Luxembourg patent office.

Infosys said that its cloud and big data business executed over 100 engagements. Over the last quarter, Infosys won over 15 engagements across cloud services and big data.

Infosys BPO revenues were reported at $127.26 million in Q1 compared to $125.69 million in the March quarter.

The company witnessed a gross addition of 10,138 employees (net addition of 575) for the quarter. Infosys' attrition remained a concern at 16.9% in the first quarter.