Infosys Results Results for Q1 2009

Infosys Results for Q1 2009 month ending June are announced today. The Infosys Results turned out to be better than the forecast, however the results are not so good if we compare them with last year due to the global slowdown. Here are the highlights of the Infosys Results:

Lowered annual revenue guidance for 2010

Earnings for fiscal 2010 would be in the range Rs 21,416-Rs 21,747 crore, reflecting a year-on-year decline of 1.3% to a growth of 3%.
Global economic challenges and lower technology spend by major clients pushed Infosys Technologies to lower its quarterly and annual revenue guidance

Infosys Q1 Results

Net Sales down on Qtr basis

• Net income to Rs 5,472 for the quarter ended June 2009
• Net income for the March 31, 2009 quarter was Rs 5,635 crore
• Net income 2.9% sequential fall in quarterly results
• Sales year-on-year was higher by 12.7% on Rs 4,854 crore posted in June 2008
• Top customers including BT and Bank of America deferred new technology spend and negotiate hard for lower billing rates

Net Profit down on quarterly basis

• Net profit for quarter to June: Rs 1,527 crore
• Net profit for quarter ending March: Rs 1,613 crore
• 5.3% lower than the March quarter
• Net profit 17% higher than the Rs 1,302 crore in the same quarter in 2008
• Operating profit margin improved by 50 basis points quarter-on-quarter to 34.1% in June 2009 against 33.6% in March 31, 2009
• Expected FY10 operating margins to be around 31.5%.

EPS increased compared to last year

• Earnings Per Share (EPS) increased to Rs 26.66 during the Q1
• 17.2% from Rs 22.75 in the same quarter of the previous year.

Infosys is sitting on large Cash?

Cash and cash-equivalents, including investments in liquid mutual funds and certificate of deposits, as on June 30, 2009 (were) Rs 12,030 crore, against Rs 7,411 crore as on June 30, 2008. A whopping increase by more than 5000 crore.

Reduced the headcount

Headcount declined by 945 during the last quarter to 1,03,905

It seems that company is trying hard to cut costs due to the pressure from customers who have stopped giving new projects and asking to reduce the billing rate. A decline of 1% in headcount is substantial for an IT company and looks like they are not trying hard to retain people. The increase in cash within one year by over 5000 crore shaows that the cost cutting is going on in major way. Obviously they are expecting the coming year also to be tough!