Infosys Quarterly Profit Up 15.4 PCNew Delhi, Jul 12: Infosys on Tuesday reported a 15.4 percent rise in first quarter profit in dollar terms, missing expectations and sending its stock down by nearly 6 percent.The Indian software services bellwether was
New Delhi, Jul 12: Infosys on Tuesday reported a 15.4 percent rise in first quarter profit in dollar terms, missing expectations and sending its stock down by nearly 6 percent.
The Indian software services bellwether was hit by higher wages which could not be offset by strong demand from new clients.
Infosys reported net profit of $387 million for the April-June quarter. Quarterly revenue at India's No 2 outsourcing company was $1.671 billion, reflecting quarter-on-quarter growth of 4.3 percent.
Infosys shares tumbled by nearly 6 per cent as its results failed to match market expectations.
The company maintained a revenue growth forecast of 18 to 20 percent for the fiscal year ending March 2012 with revenue expected to be in the range of $7.13 billion and $7.25 billion.
Infosys, which includes Goldman Sachs, BT Group and BP Plc among its clients, added 26 new clients during the quarter.
"Infosys's result was slightly lower than expectations. And its top-line growth is faster than bottom-line growth, meaning its cost is rising more than the company had forecast," said John Lin, of Uni-President Asset Management's Chindia Fund.
More than 70 percent of Infosys's revenue comes from the US and European markets, making Infosys vulnerable to any slowdown in the global economy, Lin said. AP