By IANS
Bangalore : For the first time, Infosys Technologies Ltd has lowered its revenue guidance for the current fiscal (2007-08) by over 6 percent from what it projected in April, despite a 35 percent first quarter net profit growth over the same quarter of the last fiscal.
The IT major has been forced to lower its revenue guidance due to the record 6.2 percent appreciation of the rupee during the first quarter (April-June), wage revision and higher visa costs.
In a notification to the stock exchange here Wednesday, the company said the consolidated revenue for this fiscal was expected to be Rs.162-164 billion, projecting a year-on-year (YoY) growth of 16.9-18.3 percent under the Indian GAAP.
At the beginning of this fiscal, the company's revenue guidance was Rs.170-173 billion, projecting YoY growth of 22.6-24.6 percent under the Indian GAAP.
Infosys posted a net profit of Rs.10.79 billion for the first quarter of the current fiscal, registering 35 percent YoY growth over the same quarter of the last fiscal (Rs.8 billion) under the Indian GAAP.
In its notification to the stock exchanges, the company said the consolidated income for the quarter (Q1) under review was Rs.37.73 billion, posting YoY growth of 25 percent under the Indian GAAP.
Under the US GAAP, the net income for the first quarter has shot up to $263 million, compared to $174 million in the same quarter of the last fiscal, registering a whopping 51 percent YoY growth.
Similarly, consolidated revenue for Q1 is $928 million as against $660 million a year ago, an increase of 41 percent. But despite that, the company has been forced to lower its revenue guidance.
The rupee has appreciated in June to Rs.40.58 for one US dollar from Rs.43.10 in March, an increase of Rs.2.52 in just three months.
Revision of annual wage compensation and increased visa costs have also led us to revise the guidance for the fiscal, which is 6.3 percent lower than what we had projected earlier, a top company official told IANS here.
Under the US GAAP, the revenue guidance has been, however, revised marginally upwards to $4-4.05 billion from $3.95-4.02 billion given earlier, projecting YoY growth of 29-31 percent as against 28-30 percent earlier.
For the second quarter (July-Sept), the consolidated revenue is estimated to be Rs.40 billion, a YoY increase of 16 percent under the Indian GAAP. The earnings per share (EPS) is expected to be around Rs.19, a YoY growth of 13 percent.
Under the US GAAP, the revenue is expected to be around $984 million, a YoY growth of 32 percent.