Infosys profit dips due to strong rupee

Dylan Bushell-Embling
15 Apr 2010
Daily News

Indian IT outsourcing company Inosys recorded a slight decrease in fourth-quarter profit, as the company fell victim to exchange rate fluctuations.

The company posted a net profit of 16 billion rupees ($361.9 million), a 0.9% year-on-year decline. But in US dollar terms, post-tax profit grew 8.7% year-on-year.

The company said it had boosted its earnings 5.5% to 59.4 billion rupees during the quarter, and added 47 clients as well as over 9,000 new employees.

“The currency volatility continues to be a concern for the industry,” CFO V Balakrishnan said. “We, however, have an active hedging program to minimize its impact on our margins.”

Despite this volatility, Infosys delivered a solid forecast for the current quarter and financial year.

“Though the economic environment continues to be challenging, businesses are investing in growth for building a better future,” CEO S Gopalakrishnan said.

The company is forecasting revenue of 59.2 billion rupees during the quarter, and 24.8 billion rupees during the year ending in March 2011. This would be a respective 8.2% and 9.0% increase.

But in US dollars, the company expects revenue growth of 18.5% for the quarter and 16% for the year.

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