Infosys posted a 3.7 percent year-on-year increase in its first-quarter net profit, matching estimates, after contract wins and foreign exchange gains boosted earnings. It reported a consolidated net profit to Rs. 2,374 crore for the first quarter ended June 30, 2013. Analysts have been watching out for the company's performance since Narayana Murthy started steering the boat.
This is a good start for Murthy. However, Infosys's revenue growth forecast still falls behind the 12-14 per cent growth outlook for the Indian IT sector predicted by NASSCOM. Infosys is yet to regain investors' trust in its ability to deliver strong earnings after almost two years of disappointing results.
Last quarter, Infosys forecast full-year sales growth that missed analyst expectations by a margin of up to 50 per cent, sending its shares down as much as about 20 per cent, an NDTV report states.
The net profit for the same period last year was Rs. 2,289 crore. Consolidated revenue for the reported quarter was up 17.2 per cent to Rs. 11,267 crore from Rs. 9,616 crore in the year-ago period.
Attrition- still a worry
Infosys employs 1.57 lakh people. They pride on the increase in utilization rate of employees at 72.4%, which has gone up by 1.5% sequentially. However, what worries them is their attrition rate.
The company saw an attrition of 16.9% for the just Q1 - 2013, compared to 16.3% during the previous quarter. For Q1 2012, attrition was 14.9%.
Infosys maintains forecast estimate
Infosys kept its US dollar revenue guidance unchanged at 6-10 per cent for this fiscal, it revised its rupee revenue guidance upwards to 13-17 per cent from 6-10 per cent for the same period. Infosys also maintained its forecast for 6-10 percent revenue growth for the current 2013/14 financial year.
Vertical break-up
The details on revenue from verticals has been stated by Infosys as follows:
- 33.7% of Infosys' overall revenues for the first quarter came from banking, financial services and insurance sectors, which rose 1.9% sequentially.
22.5% came from the manufacturing sector revenues grew 4% on a quarter-on-quarter basis.
- 15.8% of the revenue was contributed by retail and consumer product firms, up from 15.4% last quarter.
- 19% came from energy, utilities and communications sector, slightly down from 20% in the previous quarter.
- 8.5% of its revenues came from clients the telecom sector.
- 2.4% of its revenues is attributed to healthcare.