Oct. 14, 2010, 11:34 p.m. EDT
Infosys Technologies Ltd. (
INFY ) Friday reported a higher-than-expected growth in net profit for the quarter ended Sept. 30 and raised its profit and revenue forecasts for the financial year ending March 31. The Indian software services major posted a fiscal second quarter net profit of 17.37 billion rupees ($393 million), 13.2% higher than in the year-earlier period, as improved demand for outsourced services offset the impact of a stronger rupee. Revenue increased 24.4% to 69.47 billion rupees. Infosys said it will pay a special dividend of 30 rupees, in addition to an interim dividend of 10 rupees a share. Infosys shares jumped 1.3% in early Mumbai trade. The company increased its full-year earnings-per-share forecast to a range between 115.07 rupees-117.07 rupees from 112.21 rupees to 116.73 rupees previously, and also said it now expects revenue growth to be stronger
Infosys shares rise as Q2 profit beats forecast - MarketWatch
October 18, 2010 7:56 AM EDT
J.P. Morgan upgrades Synaptics (Nasdaq:
SYNA) from Neutral to Overweight. PT $40.
J.P. Morgan downgrades Infosys (Nasdaq:
INFY) from Overweight to Neutral.
StreetInsider.com - J.P. Morgan Upgrades Synaptics (SYNA) to Overweight; Downgrades Infosys (INFY) to Neutral
November 3, 2010
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Infosys’s Financials
Infosys (NASDAQ:INFY) saw Q2 revenues grow 30% over the year and 10% over the quarter to $1.5 billion and exceeded the market’s expectations of $1.4 billion. EPS grew 16% over the year and 14% over the quarter to $0. 65.
For the current quarter, Infosys expects revenues to be $1.55 billion–$1.56 billion with EPS of $0.66–$0.67. They expect to end the year with revenues of $5.95 billion–$6.00 billion with EPS of $2.54-$2.58.
Infosys’s Operating Metrics
Infosys saw significant growth in utilization during the quarter. Q3 utilization including trainees was 74.3% compared with 73.0% a quarter ago and 67.3% a year ago. However, attrition continued to increase and reached 17.1% in the quarter compared with 15.8% in the previous quarter and 10.9% a year ago. Despite higher attrition, the company added nearly 7,650 employees during the quarter, making this the largest addition of employees since December 2007.
Infosys’s Global Footprint
Infosys too is working on opening a campus in China. Their Shanghai campus is expected to accommodate over 20,000 employees from their current base of 2,700 employees in the country. Goldman Sachs’s report pegs Infosys’s China revenues for the year to grow to over $200 million from the present $100 million. Besides China, Infosys is also growing in Europe and has already invested $100 million in expanding their set-up on the continent.
Infosys projects full-year sales of $5.72 billion–$5.81 billion with EPS of $2.42–$2.52. The market was looking for revenues of $5.67 billion with EPS of $2.47. For the current quarter, Infosys projects revenues of $1.41 million–$1.43 million with EPS of $0.59–$0.60 compared with the Street’s estimates of revenues of $1.38 billion with EPS of $0.60.
The stock is trading at $67.16, taking the market capitalization to $38.4 billion. It touched a 52-week high of $71.99 earlier last month.
Outsourcers Look To China, As Obama Goes To India | Sramana Mitra)
November 4, 2010, 11:00AM EST
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The worry is that protectionist measures in the U.S. could quickly change the outlook from robust to dreadful in a market that represents 61 percent of India's $50 billion in annual IT service exports. Two-thirds of Hexaware's $215 million in revenue last year came from the U.S. Bigger Indian companies rely on the American market, too. U.S. sales accounted for 57.5 percent of TCS's revenue for the year ended March 2010, and North America made up 66 percent at Bangalore-based Infosys Technologies (
INFY), according to Bloomberg data.
Indian executives know they must diversify, yet they have had limited success generating new business in markets beyond North America and Western Europe. Their presence in Japan is insignificant, says Arno Franz, president of Asia Pacific for sourcing advisory firm TPI. Indian outsourcers have high hopes for China, where they are hiring engineers to work on projects for multinational and local customers. "They are placing most of their bets on China," says Franz. "But it takes years and years." India's major IT companies only employ around 5,000 people in China, according to a Goldman Sachs (
GS) report, and generated sales of just $257 million.
That means India's IT companies have to keep building their business in the U.S. while their efforts elsewhere slowly take root. To defuse the outcry about companies shipping American jobs offshore, Indian firms are trying to build up local staffs.
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India Outsourcers Feel Unloved in the U.S. - BusinessWeek
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