Infosys misses fourth quarter forecast,scrip tumbles 9.59 per cent

The company,the country’s second largest IT services exporter,reported a fourth quarter net profit of Rs 1,818 crore,rising just 2.15 per cent over the previous quarter and 14 per cent over the corresponding quarter last year. Revenues inched up by 2 per cent to Rs 7,250 crore (q-o-q basis),finishing marginally ahead of its own guidance. The figures were below street expectations of a net profit of around Rs 1,860 crore and revenues of about Rs 7,450 crore.

Infosys shares on the BSE slipped 9.59 per cent to end the day at Rs 2,988.80. Annual revenues of the company stood at Rs 27,501 crore,a growth of 20.9 per cent over last year. PAT for the period rose to Rs 6,823 crore,up from Rs 6,219 crore last year. The company’s guidance for FY12 was in line with expectations,with a forecast of 18-20 per cent rise in revenue in dollar terms,to touch $7.13-7.25 billion.

In rupee terms,Infosys sees revenue of Rs 31,727-32,270 crore in FY12,a growth of 15.4-17.3 per cent. The management has attributed the struggle to domestic currency volatility and shortened project lifecycles as preferred by clients. While analysts felt that Infosys numbers could drag down market expectations from the rest of the IT industry,the company tried its best to keep its chin up. “We expect the demand environment to be normal this year for the industry,” said S Gopalakrishnan,CEO and MD.

“We have had good client additions,29 new clients last quarter. Verticals such as BFSI,retail and manufacturing is seeing good traction. IMS,testing,and consulting are doing very well. We will add 45,000 employees next year because we want to be prepared for growth,” he added.

Chief financial officer V Balakrishnan,however,admitted that currency volatility and inflation continued to be challenges.

“Customers are nervous about the economy. The disruption of supply-chain in manufacturing due to the Tsunami in Japan,will affect the manufacturing sector and this may impact their spending on IT,” the CFO said. He added that margins in FY12 will decline because the firm is making investments,mainly in people.