Infosys Q1 net falls 2.6%, lags forecast
Bangalore: Infosys Technologies Ltd, India`s No. 2 software services exporter, lagged market estimates with a surprise 2.6 percent drop in quarterly profit as the European debt crisis and salary increases took shine off improving US demand.
The Nasdaq-listed firm said on Tuesday net profit in its fiscal first quarter ended June 30 fell to 14.9 billion rupees ($318 million).
A poll of brokerages had forecast a profit of 15.56 billion rupees for Infosys, which counts Goldman Sachs, BT Group and BP among its main clients.
Infosys, larger rival Tata Consultancy Services and third-ranked Wipro have all stepped up hiring and raised salaries as demand for outsourcing grows in an improving global economy.
But a debt crisis in Europe, the second-largest market for Indian outsourcers after the United States, has clouded the demand outlook from the continent, while a weaker euro crimps margins for the export-driven companies.
Infosys shares, valued at about $35 billion, hit a record high on Monday and are up 11 percent this year, outpacing the 7 percent rise in the sector index.
More from India
More from World
More from Sports
More from Entertaiment
- I am still single, says Hrithik Roshan
- Bharat bandh: Nation braces for country-wide strike on Wednesday
- Exclusive: I am father of Sheena, Mikhail, but never married Indrani Mukerjea, says Siddharth Das
- Former Pakistani spinner Arshad Khan now a taxi driver in Sydney!
- SC intervenes into Khap panchayat's rape order of two UP sisters, seeks report from Akhilesh govt