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October 14, 2010, 11:42 PM EDT
By Ketaki Gokhale
(Adds new forecast in third paragraph and record share price in sixth.)
Oct. 15 (Bloomberg) -- Infosys Technologies Ltd., India?s No. 2 software exporter, posted profit that beat analysts? estimates and agreed to pay special dividend as the rebounding global economy boosts demand for information technology services.
Net income rose 13 percent to 17.4 billion rupees ($394 million) in the three months ended in September, from 15.35 billion rupees a year earlier, Bangalore-based Infosys said today. That compared with the 17 billion rupee average of 31 analyst estimates compiled by Bloomberg. Infosys will also pay a special dividend of 30 rupees a share.
The company raised its full-year profit and sales forecasts as it joined Intel Corp. among major technology companies indicating corporate spending is recovering. Chief Executive Officer S. Gopalakrishnan, who cut prices in 2009, said last month that billings have stabilized amid a global economic revival.
?Project proposals were strong in the previous few quarters, and those are going to start translating into earnings now,? said Shashi Bhusan, an analyst with Prabhudas Lilladher Pvt. in Mumbai who has a ?buy? rating on Infosys stock.
These include five-year applications and support contracts signed last year with BP Plc and Telstra Corp., Bhusan said before the results were announced. The company added 27 new clients in the second quarter.
Infosys shares fell as much as 1.2 percent after rising as much as 2 percent to a record 3,249 rupees.
The company said it now expects sales in the year ending in March to be in the range of $5.95 billion and $6 billion compared with a July forecast for sales to be in the range of $5.72 billion to $5.81 billion. Earnings per share will be in the range of $2.54 to $2.58 per American Depositary Receipts compared with a previous estimate of as much as $2.52.
In the past quarter, Infosys won orders including a contract from Turklandbank AS and the Global Group, an Indian telecommunications infrastructure company.
Sales rose 24 percent to 69.5 billion rupees, from 55.9 billion rupees a year earlier. That compared with the 67.2 billion rupees average of 43 analyst estimates compiled by Bloomberg.
--Editors: Anand Krishnamoorthy, Young-Sam Cho, Vipin Nair.
To contact the reporter on this story: Ketaki Gokhale in Mumbai kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
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(Adds new forecast in third paragraph and record share price in sixth.)
Oct. 15 (Bloomberg) -- Infosys Technologies Ltd., India?s No. 2 software exporter, posted profit that beat analysts? estimates and agreed to pay special dividend as the rebounding global economy boosts demand for information technology services.
Net income rose 13 percent to 17.4 billion rupees ($394 million) in the three months ended in September, from 15.35 billion rupees a year earlier, Bangalore-based Infosys said today. That compared with the 17 billion rupee average of 31 analyst estimates compiled by Bloomberg. Infosys will also pay a special dividend of 30 rupees a share.
The company raised its full-year profit and sales forecasts as it joined Intel Corp. among major technology companies indicating corporate spending is recovering. Chief Executive Officer S. Gopalakrishnan, who cut prices in 2009, said last month that billings have stabilized amid a global economic revival.
?Project proposals were strong in the previous few quarters, and those are going to start translating into earnings now,? said Shashi Bhusan, an analyst with Prabhudas Lilladher Pvt. in Mumbai who has a ?buy? rating on Infosys stock.
These include five-year applications and support contracts signed last year with BP Plc and Telstra Corp., Bhusan said before the results were announced. The company added 27 new clients in the second quarter.
Infosys shares fell as much as 1.2 percent after rising as much as 2 percent to a record 3,249 rupees.
The company said it now expects sales in the year ending in March to be in the range of $5.95 billion and $6 billion compared with a July forecast for sales to be in the range of $5.72 billion to $5.81 billion. Earnings per share will be in the range of $2.54 to $2.58 per American Depositary Receipts compared with a previous estimate of as much as $2.52.
In the past quarter, Infosys won orders including a contract from Turklandbank AS and the Global Group, an Indian telecommunications infrastructure company.
Sales rose 24 percent to 69.5 billion rupees, from 55.9 billion rupees a year earlier. That compared with the 67.2 billion rupees average of 43 analyst estimates compiled by Bloomberg.
--Editors: Anand Krishnamoorthy, Young-Sam Cho, Vipin Nair.
To contact the reporter on this story: Ketaki Gokhale in Mumbai kgokhale@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
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