Bangalore, Jan 13 (Agencies): Infosys Technologies on Thursday posted below market expectation 14.2 per cent rise in third quarter profit at Rs 1,780 crore, while remaining buoyant on future prospects on top of rise in global outsourcing demand. Though the global software major hired 11,067 employees during the quarter, the net addition was 5,311 techies, as 5,756 left the company for various voluntary and involuntary reasons.
The country's software major has raised the outlook for the next quarter and for the full 2010-11 fiscal on expectation of pick-up in demand for services from US and Europe markets.
Infosys which serves clients in U.S, Europe and various emerging markets, provides end to end business solution and off shore outsourcing of software services.
For the third quarter ended December, 31, 2010, the company reported a consolidated net profit Rs 1,780 crore, as against a net profit of Rs 1,559 crore in the same quarter of previous fiscal (2009-10), Infosys said here.
As per the marketmen, the results fell below market expectations as strong rupee weighed, dragging shares of the country's second-largest software exporter by over 4 per cent on the Bombay Stock Exchange.
"We were expecting Infosys to report at least 16-17 per cent quarter-on-quarter growth" an analyst said.
However, the company which has posted a decent growth in the quarterly numbers is hopeful of posting robust growth in revenue in the next quarter (Q4) as well as in the full fiscal year ending March, 2011.
"We are seeing an increase in demand for new services, even in an environment where customers are focusing on projects which could enhance their competitiveness in the short term," Infosys Chief Operating Officer SD Shibulal said.
The consolidated revenue of the country's second largest software exporter rose to Rs 7,106 crore during the October-December period of 2010, as against Rs 5,741 crore over the year-ago period.
For the Q4 the company sees its revenues to be in the range of Rs 7,157- Rs 7,230 crore, while it anticipates the revenue for the full year ending March 31, 2011, in the range of Rs 27,408-Rs 27,481 crore.
However, Chief Financial Officer V Balakrishnan of the IT major states,"Uncertainties related to sustainability of the global economic recovery could create greater currency volatility in the near future."
Infosys said it continued to generate new clients in new markets, adding 40 clients during the third quarter.
On the headcount front, the company added 5,311 employees in October-December quarter of 2010, taking its total employees strength to 1.27 lakh.
"Our attrition has further reduced and the employee engagement programme has shown good results," said T V Mohandas Pai, Member of the Board and Head – HRD and Education
and Research of Infosys.
"Employee referrals are at an all time high. Lateral hiring was a record this quarter", he said. The cash and cash equivalents of Infosys declined by nearly 4 per cent to Rs 14,819 crore for the quarter ended December 31, 2010 on quarter-on quarter basis.
Meanwhile, the Board of Directors of the IT giant has appointed R Seshasayee as an Additional Director of the company with immediate effect.
He would hold office up to the date of the Annual General Meeting, when his appointment as a director would be placed for the approval of the shareholders.
Welcoming him, N R Narayana Murthy, Infosys Chairman and Chief Mentor said “Seshasayee is a rare corporate leader who brings the best of leadership ideas, governance and ethics".
More techies lost than hired in Q3
The attrition rate at India's IT bellwether Infosys Technologies Ltd shot up during the October-December third quarter of fiscal 2010-11 on annualised basis, with more employees leaving than it hired.
"The attrition rate has gone up to 17.5 percent by December from 11.6 percent in like period year ago and by 0.4 percent sequentially from 17.01 percent at the end of the previous quarter (September)," the company said in a statement here Thursday.
With additional hiring, the total number of employees stood at 127,779 at the end of the third quarter (December 31) as against 122,468 a quarter ago and 109,882 a year ago.
Infosys' board director and human resources development head T.V. Mohandas Pai, however, maintained that attrition had reduced in the parent company (sequentially) and the employee engagement programme had shown good results.
Attrition during the second quarter was 6,618 employees while net addition was 7,646 employees.
"Employee referrals are at an all-time high. Lateral hiring was a record this quarter," Pai said in a statement.
Bangalore, Jan 13 (Agencies): Infosys Technologies on Thursday posted below market expectation 14.2 per cent rise in third quarter profit at Rs 1,780 crore, while remaining buoyant on future prospects on top of rise in global outsourcing demand.
Though the global software major hired 11,067 employees during the quarter, the net addition was 5,311 techies, as 5,756 left the company for various voluntary and involuntary reasons.