(MarketWatch) -- Infosys Technologies on Wednesday reported a better-than-expected fourth-quarter profit, but its shares tumbled after the company forecast a decline in earnings for the current financial year, citing the impact of the global economic crisis on its clients.
India's second largest software exporter, which gets nearly 90% of its business from U.S. and European clients, reported net income of 16.13 billion rupees ($329 million) for the January-March period, from 12.49 billion rupees in the year-earlier quarter, helped by the rupee's weakness against the U.S. dollar.
Revenue increased 24% to 56.35 billion rupees as the company acquired 37 new clients, offsetting the impact of a fall in billing rates.
Citigroup said in a note to clients that the fourth-quarter results were below expectations in terms of business volume and pricing, and that higher non-operating income helped the company beat consensus estimates.
The forecast for the current financial year highlighted that "the outlook for the sector is still challenging," the report said. For the sector, the forecast meant that there were "no first signs of bottoming out," while the extent of the pricing pressure was "not factored into most estimates."
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