Software services exporter Infosys on Monday reported better-than-expected rise in margins and profit for the quarter ended March 31, 2014.
The second largest software services exporter of India announced that its net profit of Rs 2,992 crore for the January to March quarter of FY2014, up 25 per cent from the corresponding quarter of the previous year. Quarter-on-quarter growth in net profit stood at 4 per cent.
Analysts had projected a net profit of Rs 2,835 crore for the company's fourth fiscal quarter.
Shares of IT outsourcer Infosys came under tremendous selling pressure in morning trade on Thursday after the company announced that it was expecting this fiscal's revenue growth to be weak.
Infosys said it expected its revenue would likely grow 11.5 per cent year-on-year in 2013-14, lagging peers like TCS and HCL Tech.
The expected growth rate also lags industry body Nasscom's estimated growth rate of 13 per cent for the industry.
Shares of software services exporter Infosys jumped more than 2 per cent in early trade on Friday after the company posted a better-than-expected results for the December quarter.
Infosys announced that its adjusted net profit jumped 19.4 per cent quarter-on-quarter to Rs 2,875 crore in the October-December quarter of 2013. Sales jumped to Rs 13,026 crore.
A group of analysts had projected the company's net profit and sales at Rs 2,786 crore and Rs 13,063 crore, respectively.
Infosys, India's second-largest IT services firm, has plans to hire up to 16,000 engineering graduates during next financial year, N R Narayana Murthy announced on Wednesday.
Mr. Murthy, executive chairman of Infosys, also revealed that the company has already started the process of recruiting fresh engineers.
Speaking at an event yesterday, he said, "We have already started recruitment for the next year. We are looking at about 15-16,000 engineers, so the process is already in progress."
Indian software services provider Infosys on Friday reported a considerable year-on-year increase in its consolidated net profit for the September quarter, but failed to meet analysts' estimates.
Infosys announced that its consolidated net profit in the July-September quarter of current fiscal jumped 1.6 per cent from the corresponding quarter of last year to Rs 2,407 crore (US$391M). In the July-September quarter of 2012, the company had pocketed a consolidated net profit of Rs 2,369 crore.
Some brokerage firms have raised doubts on N. R. Narayana Murthy's turnaround plan for Infosys, as top-level management exits at the software services provider continues.
The most-recent exit was of Infosys' Americas head & global manufacturing chief Askok Vemuri, who was widely considered a successor to the company's CEO S. D. Shibulal, whose term is slated to come to an end in 2015.
Vemuri's resignation followed the exits of Sudhir Chaturvedi - ex-head of banking & financial services in the U. S., and Basab Pradhan - former global head of sales & marketing.
Indian software services provider Infosys' Americas head and global manufacturing chief Askok Vemuri's resignation has provided a strong indication that the sequence of high-profile exits at the company is still going on.
Vemuri's sudden exit surprised industry watchers as he was widely considered a contender to succeed the company's chief executive officer S. D. Shibulal, whose term is scheduled to end in mid-2015.
Infosys shares jumped in early trade on Friday, a day after the Indian software firm announced pay hikes for its all eligible domestic as well as overseas employees.
On Thursday, the country’s second-largest software services provider announced that it would hike salaries by an average of 8 per cent for Indian staff and by 3 per cent for overseas staff.
In response, Infosys stock jumped 0.35 per cent to Rs 2,387.60 a share as of 09.20 am on the Bombay Stock Exchange (BSE), while the broader BSE information technology benchmark slipped into the red.
After a plunge in shares, Infosys holds on to a profit in the fourth quarter of 2012. This has been an earning season for the company.
Viju George and Amit Sharma of JP Morgan said, "We expect Infosys to meet its guidance in constant-currency terms, but 0.3 percentage point cross-currency revenue growth headwind might just make it difficult to meet guidance in reported terms".