Infy Beats Expectations - Announces RS.10 as dividend

Infosys Technologies has announced its Q2FY10 numbers. Its bottom-line was above the street expectations while revenues were in line with estimates.

Its net profit went up 0.85% to Rs1,540Cr versus Rs1,527Cr in previous quarter.
Its revenues were up 2.06% to Rs5,585Cr from Rs5,472Cr on quarter-on-quarter (Q-o-Q) basis. CNBC-TV18 had estimated net profit at Rs1,509.4Cr and revenues at Rs5,604.3Cr.

It reported operating profit was at Rs1,933Cr and its operating margins improved a bit to 34.6% versus 34.1%.

*BFSI (Banking, Financial Services and Insurance) revenues inched up 3.5% to Rs 1,871Cr versus Rs1,807Cr on QoQ basis.
*Telecom Segment revenues went up 7.6% to Rs992Cr versus Rs 922Cr (Q-o-Q).
*Manufacturing revenues went down at Rs 1,080Cr versus Rs1,090Cr.

The company declared a dividend of Rs 10 per share.

Mangement said:

• that 35 new clients are added this quarter & revenues from the top-10 clients was up 6%.
• it added one new $100 million plus client, 2 new $50 million plus clients and two 2 new $40 million clients.
• the salary hikes would impact the margins by 2%. According to them, the customers have started spending money.
• they are cautious on business due to Rupee volatility & weak dollar.
• that prices have become stable & that the clients are not asking for the renegotiation; however the upside in the prices will take some more time.

Guidance:
For Q3, it is expecting revenues of Rs5,429-5,476Cr and EPS (earning per share of Rs 23.35-23.56.

For FY10, in dollar term, Infosys expects to report EPS of $ 2.09-2.10 per share versus previous guidance of $ 1.97-2 and revenues of $ 4.60-4.62 billion versus previous guidance of $ 4.45-4.52 billion. Infosys raised FY10 dollar EPS guidance by 5-6%. The company said FY10 guidance was based on forex rate of Rs 47/$.

In rupee term, it is expecting revenues of Rs 21,961-22,055 Cr and EPS of Rs 99.60-100.

Growth by Geography (for Q2 over Q1 in %)

North America - 65.9 (64.7)
Europe - 23.2 (24.7)
India - 1.2 (0.9)
Rest of World - 9.7 (9.7)

Growth by Industry (for Q2 over Q1 in %)

BFSI - 33.5 (33); Manufacturing - 19.3 (20.5); Retail - 14.1 (13.2); Telecom - 16.2 (16.9);