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Infosys Technologies has announced its fourth quarter numbers. Its Q4 FY09 net profit dipped 1.7% at Rs 1,613 crore as against Rs 1,641 crore on quarter-on-quarter basis.
It reported a decline of 2.61% in revenues at Rs 5,635 crore as against Rs 5,786 crore QoQ.
Also read: Infosys Q4 net profit down 1.7% at Rs 1,613cr
Guidance for Q1 and FY10
The company is likely to report Q1 FY10 revenues at Rs 5,379-5,480 crore, while EPS is seen at Rs 23.55/share. The company guided for 16% drop in Q1 EPS on QoQ basis.
The company is expecting FY10 revenues to decline by 3.1-6.7% in dollar terms while increase in revenues by 1.7-5.7% in rupee terms. It is seeing EPS for full year FY10 at Rs 96.65-101.18 a share versus Rs 104.43 in FY09. Its FY10 EPS for ADS is seen down by 11-15%.
Infosys disappoints
Rupee guidance: Below estimates
Dollar guidance: Below estimates
Rupee Q4: In line with estimates
Dollar Q4: Missed estimates
Revenues: Down against estimates
Margins: Under pressure
Offshore rates down 4.5%
Commenting on the outlook, Infosys COO said the pricing environment continues to be challenging. The company management added that the environment is challenging as clients are facing tough times. With nearly 70% of its clients cutting their IT budget by over 10%, the situation looks grim, the company added.
The management feels that the guidance will be flat to marginally negative in constant currency terms. The company sees its operating margins to fall by 300 bps while its net profit margins are likely to fall by 200 bps. It sees an average drop in prices to be around 6–6.5%. The reason for de-growth, the management said, was the delay in decision-making.
With regard to wages and hiring, the management made clear that there will neither be a hike nor a cut in wages, but job cuts are planned in FY10