Infosys fails to boost market mood

Infosys Technologies reported a net profit of Rs13.02bn in the quarter ended June 30, 2008 as against Rs12.49bn in the previous quarter. This translates into a sequential growth of 4.2%. This is better than expectations of a slight dip Quarter on Quarter (QoQ). The company's net sales increased to Rs48.54bn from Rs45.42bn in the January-March quarter. This represents a sequential growth of 6.8%. This is more or less in line with analysts' estimates, and better than the company's guidance of Rs45.7-45.8bn. The Earnings Per Share ( EPS) for the quarter is Rs22.71 versus Rs21.79 in the last quarter. The company had forecast EPS before exceptional items of Rs20.73. The net profit for the quarter ended June 30, 2008 and June 30, 2007 included a reversal of tax provisions amounting to Rs310mn and Rs510mn, respectively. Excluding this reversal, the EPS for the quarter ended June 30, 2008 and June 30, 2007 would have been Rs22.20 and Rs18.00. Infosys hiked its revenue and earnings per share (EPS) guidance for the fiscal year 2008-09 as per Indian GAAP, while leaving its annual outlook unchanged as per the US GAAP. The stock fell 7.2% on Friday, and 4.5% in the week.