Infosys results for Q1 07

Infosys Technologies had shed almost 4% to Rs 1,943.50 after it cut both EPS and revenue guidance in rupee terms for FY 2008.

The Infosys stock had bounced back from lower levels ahead of the results on the reckoning that the negatives about the Q1 June 2007 results of IT firms had already been priced in. From Rs 1916.55 on 5 July 2007, the scrip had surged 5.3% to Rs 2,019.95 on 10 July 2007. The market was expecting a sequential fall in Infosys’ net profit in Q1 June 2007 due to the rise in rupee, wage hike and visa costs.

Infosys' consolidated net profit as per Indian GAAP declined 5.6% to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007. The revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.

Operating profit margin declined sharply to 28.7% in Q1 June 2007, from 31.7% in Q4 March 2007.

Infosys has revised upwards its FY 2008 (year ending 31 March 2008) EPS guidance in dollar terms to a growth of 28.4% to 29.7% compared to the earlier guidance of 25.7% to 27.7% growth. It has also slightly raised revenue guidance in dollar terms to 29% to 31% growth,from the earlier guidance of a growth of between 28% to 30%.

It has cut EPS guidance in rupee terms to a growth of 15.6% to 16.8% compared to the earlier guidance of 20% to 22% growth. It has also slashed revenue guidance in rupee terms to 16.9% to 18.3%, from earlier guidance of a growth of 22.6% to 24.6%.