By RTT News, October 11, 2013, 12:46:00 AM EDT
(RTTNews.com) - Indian software exporter Infosys Ltd (INFOSYSTCH, 500209, INFY) Friday said profit for the second quarter declined from the prior year as higher expenses offset a 15 percent increase in revenues.
Further, the company raised the low end of its full year revenue outlook, sending the shares up by over 5 percent in early morning trading on the Bombay Stock Exchange.
S. D. Shibulal, CEO, said, "During the quarter we witnessed broad-based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives."
Profit attributable to owners of the company declined to $383 million from $431 million in the prior year and $418 million in the previous quarter. The results are on IFRS basis. Earnings per equity share fell to $0.67 from $0.75.
Excluding a provision of $35 million for visa related matters, earnings per American Depositary Share were $0.73 per share. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues climbed 15 percent to $2.066 billion from $1.797 billion in the previous year and improved 3.8 percent sequentially. Analysts expected revenues of $2.01 billion for the quarter.
A major portion of the company's revenue is generated in the U.S. Infosys competes with Tata Consultancy Services Ltd., Wipro Ltd. ( WIT ) and Accenture Plc ( ACN ).
In rupee terms, net profit edged up 1.6 percent to 24.07 billion rupees and revenues climbed 31.5 percent from last year to 129.65 billion rupees.
Total operating expenses climbed to $278 million from $211 million, amid higher Selling and marketing expenses as well as increased Administrative expenses.
Infosys and its subsidiaries added 68 clients during the quarter. There was a net addition of 2,964 employees in the quarter.
The company declared an interim dividend of $0.32 per ADS with a record date for payment of October 18.
Rajiv Bansal, Chief Financial Officer, said, "The global currency market remains volatile with the Indian Rupee depreciating by 11% during the quarter. We have an active hedging program to minimize its impact on our margins. We will continue our focus on optimizing costs and enhancing the efficiency of our operations,"
For the fiscal year ending March 31, 2014, the company expects revenues to grow 9 to 10 percent. The previous expectation was for a revenue growth in the range of 6 to 10 percent for the fiscal year.
The stock is gaining 5.12 percent in early morning trading on the Bombay Stock Exchange at 3,284 rupees.
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