Infosys profits rise

City A.M. Reporter
Infosys, India's No.2 software services exporter, reported a 9.7 per cent rise in quarterly profit and cut its full-year revenue outlook by less-than-expected, cheering investors who shrugged off its warning about global economic uncertainty.

Nasdaq-listed Infosys said consolidated net profit rose to 19.06 billion rupees (£248m) for the fiscal second quarter ended September 30, from 17.37 billion rupees reported a year ago, as a weaker rupee boosted results.

The company, which counts Goldman Sachs, BT Group and BP among its main clients, trimmed its dollar revenue growth forecast to 17.1 per cent to 19.1 per cent for the fiscal year, from 18 per cent to 20 percent projected earlier.

"The dollar revenue guidance cut is due to a cut in discretionary spending by clients. But it was modest compared with what people had expected," said Jagannadham Thunuguntla, research head at SMC Global Securities.

He said analysts had expected Infosys to slash its dollar revenue outlook by 4 to 5 percentage points.