Infosys net profit up 25pc, beats forecasts

April 16, 2014 - 1:08:45 am

BANGALORE: Indian outsourcing giant Infosys yesterday reported quarterly net profit rose by a surprise 25 percent, lifted by new European and US contracts, as it forecast an increase in annual revenues.

The Nasdaq-listed firm announced consolidated net profit climbed to Rs29.92bn ($496m) in the January-March quarter from Rs23.9bn in the same year-earlier period. Analysts had expected Infosys to report a profit of Rs28.1bn.

Shares of the company leapt by as much as 4 percent after Infosys, India’s second largest IT services exporter by sales, forecast revenues would climb seven to nine percent in US dollar terms for the financial year that began in April. Infosys, based in the southern high-tech city of Bangalore, said it had signed 50 new clients in the quarter including Chinese-owned Swedish carmaker Volvo. The company is “firmly focused on building the growth momentum by making all the necessary investments in our business”, Infosys chief executive S D Shibulal (pictured) said in a statement. But Shibulal tempered his outlook by stating that while the company had secured new customers, clients were taking longer to seal transactions 

due to a challenging business environment. AFP

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