Infosys profits rise slightly despite currency woes

Friday 12 July 2013 09.30
First Infosys earnings report since firm brought back co-founder NR Narayana Murthy as executive chairman.
First Infosys earnings report since firm brought back co-founder NR Narayana Murthy as executive chairman.

Indian software outsourcing giant Infosys posted slightly higher quarterly profit today and maintained its revenue growth forecast despite the weak rupee and uncertainty about US visas for its employees.

The company stuck to its forecast of 6-10% revenue growth for the fiscal year ending March 2014. Some analysts had predicted Infosys would lower the forecast.

The company said its profit for the three months from April to June quarter rose 0.5% from a year earlier to $418m.

It was the first earnings report since Infosys brought back co-founder NR Narayana Murthy in June as executive chairman. 

The company's last results disappointed with lower profits and a subdued growth forecast, so today's more positive outlook was welcomed by investors.

Infosys is a bellwether for India's $108 billion outsourcing industry, which has been hit by weaker demand from US and European clients.

The industry also is closely watching a provision in the US immigration reform bill that would limit the number of special visas for IT workers.

"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well," CEO SD Shibulal said in a statement. He said he is "cautiously optimistic" about the rest of the year.

The weakening Indian rupee - which has lost 12%of its value since May - weighed down the company's dollar profits. In local currency terms, Infosys had net profit of 23.7 billion rupees for the June quarter, up 3.7% and beating the forecast of 2.1% growth in a survey of analysts.