Infosys Q3 result fails to cheer Dalal Street

Bangalore: Infosys Technologies, India’s 2nd largest software services exporter, today announced its December quarter results for FY 2010-11. The company said that its consolidated revenues rose 23.8% y-o-y (2.3%, q-o-q) to Rs. 7,106 crore while consolidated net profit after tax grew 14.2% y-o-y (2.5%, q-o-q) to Rs. 1,780 crore. The company’s Earnings Per Share (EPS) stood at Rs. 31.5, during the quarter ending December 31, 2010.

The IT bellwether added 40 clients during the Q3. The company also added 11,067 employees during the said quarter.

However, the results failed to cheer the market as both Sensex and Nifty were trading in red during early hours on Thursday.

According to a poll of brokerages by CNBC-TV18, the street was expecting net profit of Rs 1,814.69 crore and revenues of Rs 7,200.07 crore. In another Poll by Reuters, brokerages had estimated the IT bellwether to churn a much higher profit of Rs 18.2 billion for the third quarter.

The company has given a subdued outlook for the fourth quarter and FY’11. “The weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth,” cautioned S. Gopalakrishnan, CEO and Managing Director, Infosys.

Infosys shares were lower by Rs. 133 or nearly 4% at Rs. 3,244 on NSE at 10.11 AM.