CIMdata PLM Industry Summary Online Archive

9 October 2009

Financial News

Infosys Technologies Announces Results for the Quarter Ended September 30, 2009

Q2 Revenues Sequentially Grew by 2.9%

Highlights

    Consolidated results for the quarter ended September 30, 2009

    Revenues were $ 1,154 million for the quarter ended September 30, 2009;

    YoY decline was 5.1%

    - Net income after tax was $ 317 million for the quarter ended September

      30, 2009; YoY decline was 0.9%

    - Earnings per American Depositary Share (ADS) was 0.56 for the quarter

      ended September 30, 2009; YoY growth of 0.0%

"In the second quarter, the business climate has improved," said S. Gopalakrishnan, CEO and Managing Director. "Clients are now looking to invest in a few strategic initiatives and relationships to maximize value from opportunities when the economic downturn ends."

Business outlook

The company's outlook (consolidated) for the quarter ending December 31, 2009 and for the fiscal year ending March 31, 2010, under International Financial Reporting Standards (IFRS), is as follows:

    Outlook under IFRS*

    Quarter ending December 31, 2009

    - Consolidated revenues are expected to be in the range of

      $1,155 million and $ 1,165 million; YoY decline of 1.4% to 0.5%

    - Consolidated earnings per American Depositary Share are expected to be

      $0.50; YoY decline of 13.8%

    Fiscal year ending March 31, 2010

    - Consolidated revenues are expected to be in the range of

      $4.60 billion and $ 4.62 billion; YoY decline of 1.3% to 1.0%

    - Consolidated earnings per American Depositary Share are expected to

      be in the range of $ 2.09 and $ 2.10; YoY decline of 7.1% to 6.7%

    * Exchange rates considered for quarters ending December 31, 2009 and

      March 31, 2010 for major global currencies: AUD / USD - 0.87; GBP /

      USD - 1.60; Euro / USD - 1.46

Expansion of services and significant projects

Our strategy through the downturn has been to build our strengths rather than limit ourselves to navigating the challenges. Following this route, we are confident of emerging stronger when the economic environment improves and better poised to deliver enhanced value to all our stakeholders. We are sharpening focus on Research & Development, Intellectual Property-based solutions, and 'New Engagement Models' (NEMs) that offer flexible pricing and greater operational control and efficiency to clients. In addition, true to the spirit of our Global Delivery Model, we are continuing to invest and expand in regions such as India, Brazil, Mexico, and China. We have a sales group dedicated to large outsourcing deals that has helped us secure significant projects this year. We believe our expertise in large-scale transition management will differentiate us in the near future.

Clients have been impressed by our engineering services. An industrial products and services company is testing our 'Enterprise Collaboration Platform' to transform its intranet from an information repository into a next-generation content hub that engages employees better. A leading mobile service provider selected us as its strategic partner to run its 'Bid Management Process'. The deal involves setting up our patent-pending 'Infosys Sales Effectiveness Center' that will own the bid process, pricing, and contract services. For an apparel manufacturer, we are implementing our 'Product Master Syndication Solution' that will support the entire product lifecycle and provide a single source of data. A power major sought our 'Plant Design and Management System Solution' that enables collaboration across distributed teams. A large manufacturer selected us as its prime systems integration partner to implement and support our Product Lifecycle Management solution based on Siemens TeamCenter product.

We continue to focus on large transformational engagements, especially through our consulting and enterprise solution offerings. A broadcasting company partnered with us to develop new digital media services. A service provider for retailers engaged us to develop an Order Management System. A large bank selected us to conduct end-to-end testing as well as user-acceptance testing for the implementation of Finacle™, our core banking solution and integration with other applications. A large bank chose us for end-to-and systems integration in the transformation program of its corporate banking e-channel system. A provider of high-performance networking systems partnered with us for a transformational program to scale up its core engineering processes.

"The global currency markets continue to be extremely volatile, even though we have seen some stability in the rupee against the US dollar this quarter," said V. Balakrishnan, Chief Financial Officer. "We continue to focus on high quality growth with superior margins. Our balance sheet has been further strengthened with cash and cash equivalents reaching US$ 2.8 billion."

For more information, visit http://www.infosys.com.

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