Helped by a sharp depreciation in rupee, IT bellwether Infosys on Thursday reported 33.25 per cent growth in consolidated net profit at Rs 2,372 in the third quarter ended December 31, 2011, above market expectations. The company's revenue rose to Rs 9,298 crore.
Investors had forecasted 30 per cent rise in December quarter profit for Infosys, with margins helped by a weaker rupee.
The company had registered a net profit of Rs 1,780 crore for the December quarter of the previous fiscal (2010-11), Infosys said in a filing to the BSE.
"The Infosys result has shown that the margin has increased. The depreciation of rupee has clearly shown an impact on the Infosys result, which was better than market expectations," CNI Research CMD Kishore P Ostwal said.
Consolidated revenue of the country's second-largest software exporter rose by 30.8 per cent to Rs 9,298 crore during the period under review from Rs 7,106 crore in the year-ago period.
The results were better than the company's revenue guidance of Rs 8,826 crore to Rs 9,012 crore for the third quarter, which would have translated into year-on-year growth of 24.2 per cent to 26.8 per cent.
"The global economy, driven by slower growth in developed markets, coupled with the European crisis, could impact the growth of the IT industry," Infosys CEO and Managing Director S D Shibulal said.
"Notwithstanding short-term challenges, we are focused on long-term growth opportunities by investing in platforms and solutions, which will accelerate innovation, enhance returns for our clients and deliver higher business value," he added.
For the ongoing quarter ending March 31, 2012, Infosys expects revenues to be in the range of Rs 9,391 crore to Rs 9,412 crore, with year-on-year (Y-o-Y) growth of 29.5 per cent to 29.8 per cent.
For the year ending March 31, 2012, the company expects revenues to be in the range of Rs 34,273 crore to Rs 34,294 crore, translating into Y-o-Y growth of 24.6 per cent to 24.7 per cent.
The company said as of December 31, 2011, its cash and cash-equivalents, including investments in available-for-sale financial assets and certificates of deposits, stood at Rs 19,752 crore.
"The global currency market continues to be volatile, with the Indian rupee depreciating by 11 per cent during the quarter," Infosys' Member of the Board and Chief Financial Officer V Balakrishnan said.
"Managing extreme currency volatility in an uncertain economic environment is going to be a challenge for the industry. We believe our focus on high-quality growth combined with our flexible financial model will position us better during these challenging times," Balakrishnan added.
The company had 1,45,088 employees as of December 31, 2011. It added 49 clients during the quarter.