Infosys Q4 net profit down 1.7% QoQ

Infosys Technologies Ltd. announced financial results for the fourth quarter and financial year ended March 31, 2009. Under the Indian GAAP, Q4 FY09 net profit is at Rs16.13bn versus Rs16.41bn in the previous quarter, translating into a sequential drop of 1.7% in Rupee terms. Revenue for the January-March quarter of FY09 is at Rs56.35bn as against Rs57.86bn in Q3 FY09, indicating a sequential decline of 2.6%. Earnings Per Share (EPS) for the reporting quarter increased to Rs28.16 from Rs28.66 in the quarter ended December 31, 2008. EPS in Q4 FY08 was Rs21.83. Net profit for Q4 FY09 was up 29.1% compared to the same quarter of the previous fiscal year while revenue for the period is up 24.1% YoY.

For the fiscal year ended March 31, 2009, consolidated net profit after tax before exceptional item was Rs59.88bn; YoY growth was 28.5%. Consolidated revenue was Rs216.93bn in the year ended March 31, 2009; YoY growth was 30%. EPS before exceptional item increased to Rs104.60 from Rs81.53 in the previous year; YoY growth was 28.3%.

The net profit for the quarter and year ended March 31, 2009 includes a reversal of tax provisions pertaining to earlier period amounting to Rs150mn and Rs1.08bn, respectively (Rs200mn and Rs1.21bn for the quarter and year ended March 31, 2008). Excluding this reversal, the EPS for Q4 FY09 and year ended March 31, 2009 would have been Rs27.90 and Rs102.71 (Rs21.49 and Rs79.42 for the quarter and year ended March 31, 2008 respectively) resulting in a YoY growth of 29.8% and 29.3%, respectively.

The Board of Directors of Infosys has recommended a final dividend of Rs13.50 per share (270% on par value of Rs5 per share) for fiscal 2009.

"Many of our clients are impacted by the financial crisis and are looking to us to help them reduce their expenses and optimize their businesses," said S. Gopalakrishnan, CEO and Managing Director. "Our services, solutions and business model are well suited to help them in this environment. We are focusing on enhancing our business and investing smartly for the future."

Infosys and its subsidiaries added 37 new clients during the quarter. Infosys BPO registered six clients in the fourth quarter. Finacle added two top banks, one each from North America and Western Europe, to its list of customers this quarter. Eight Finacle customer projects went live this quarter - six in the Asia Pacific region, one each in the Europe, Middle East and Australia (EMEA) region and the Americas.