Software services major Infosys Technologies reported revenues of Rs. 5,741 crore in the third quarter of 2009-10. Although these were lower by 0.8 per cent when compared with the earnings in the same quarter of the previous years, top officials of the company said a recovery of the software services industry was imminent. In dollar terms, revenues amounted to $1,232 million in the last quarter, an increase of 5.2 per cent on a year-on-year basis. The company reported a net profit of Rs. 1,582 crore during the quarter, a decline by 3.6 per cent over last year. In dollar terms, however, it made a net profit of $334 million, an increase of 0.6 per cent. Earnings per share (in rupee terms) declined by 3.2 per cent on an annualised basis.
Unveiling the results at the company’s new campus in Mysore, Chief Executive Officer and Managing Director S. Gopalakrishnan said, “Clearly, the worst is behind us.” He said the financial services industry in the U.S. is “leading the recovery.” “Our clients are a lot more confident about managing the downturn,” he added. Although IT budgets of clients are “expected to be flat” in the near term, “the opportunities in offshoring services are likely to increase,” he said.
Presenting the outlook for the full financial year, Mr. Gopalakrishnan said the company was likely to end the year with revenues of about Rs. 22,500 crore, an increase of between 3.6 per cent and 3.8 per cent. However, he said currency fluctuations, and the possibility of the recovery in the industrialised world not being sustained, were significant risk factors. “Confidence is coming back, but we remain cautious,” he said. He said the nature of the deals in the business “are becoming increasingly complex, which requires us to invest in solutions.” In gross terms, Infosys and its subsidiaries added 8,719 employees to its workforce during the quarter. On a net basis 4,429 employees were added. The company had a total workforce of almost 1.10 lakh at the end 2009. Chief Finance Officer V. Balakrishnan said margins in the first three quarters “have turned out to be much better than our expectations.” Margins in the current year are likely to be about 50 basis points higher than in 2008-09, he added. The company had a cash surplus of $3.1 billion at the end of the last quarter. He said while the company “is looking at acquisitions.”