IT major Infosys kicked off the IT earnings season today when it declared its Q4 FY 2013 results. The results were below market estimates and the stock tanked by 16.69% to Rs 2428 in early trade on the Bombay Stock Exchange (BSE).
The major problem in the results was the guidance provided by the company for FY 2014 which was 6%-10% revenue growth for 2014 which was below Nasscom’s growth estimate of 12%-14%.
For the quarter ended 31st March 2013, Infosys registered an 18% growth in revenue of Rs 10,454 crore compared to the same period last year. The IT firm posted a flat 0.3% revenue growth sequentially. The second-largest IT firms’s net profit rose 3.4% to Rs 2,394 crore in March quarter and 1.1% sequentially.
“Global economic uncertainties remain challenging for the IT industry,” said S D Shibulal, CEO of Infosys. “We are progressing well on our strategic direction of building a high-quality company which is relevant to our clients. We are making all the investments necessary to differentiate ourselves in the market place while positioning ourselves as a partner of choice for our clients.”
During the quarter under review, Infosys and its subsidiaries added 56 clients during the quarter.
Consolidated net profit for the fiscal fourth quarter ended March 31 was Rs 2390 crore ($438 million), compared with Rs 2316 crore in the same period a year earlier.
The company’s revenue in rupee terms increased to Rs 10,454 crore, up 0.3 per cent, as compared to Rs 10,424 crore, a quarter ago. Other Income for March quarter stood at Rs 674 cr against Rs 503 crore, quarter-on-quarter (Q-o-Q).
Infosys board recommended final dividend of Rs 27/share and the IT major also said it will set aside $100 million for investment.
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