April 13, 2012 / 3:20 AM / in 6 years

Infosys Q4 profit rises 27.4 pct, meets forecast

BANGALORE, April 13 (Reuters) - Infosys Ltd, India’s second-largest software services exporter, reported a 27.4 percent rise in quarterly net profit, meeting forecast, after customers ramped up orders to cut operational costs.

Bangalore-based Infosys said on Friday consolidated net profit for the fiscal fourth quarter ended March 31 rose to 23.16 billion rupees ($449 million) from 18.18 billion rupees a year earlier.

Analysts had forecast a net profit of 23.18 billion rupees for the company, whose customers include Procter & Gamble Co and Volkswagen AG, according to Thomson Reuters data.

Infosys and its bigger rival Tata Consultancy Services Ltd , part of India’s $100 billion information technology and back-office services outsourcing sector, have benefited from cost-conscious customers bumping up demand.

An uncertain global economy and rising U.S. rhetoric against shipping of jobs to low-cost locations ahead of the November presidential election are, however, concerns for the sector that gets half its revenue from the world’s largest economy.

Tata Consultancy, Infosys and No. 3 exporter Wipro are also facing increased competition from bigger global rivals such as IBM and Accenture for a bigger share of the outsourcing business.

Reflecting the concerns on the outlook, shares in Infosys, which has a market value of $31 billion, are down 0.6 percent this year, compared with a 3 percent gain in the sector index and 12 percent rise in the broader market.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below