Infosys rose nearly 3% to Rs 2102, in early but volatile trade, even as it offered a muted EPS growth guidance for FY 2008.
Infosys' guidance, however, was much better as per the US accounting standards.
The stock initially firmed up but soon slipped into the red, to reach a low of Rs 2,027.10 at 10:14 IST, a fall of 0.8% for the day. As many as 6.1 lakh shares changed hands in the counter on BSE.
Infosys reported a 16.3% sequential growth in net profit for Q4 March 2007, at Rs 1144 crore compared to Rs 983 crore in Q3 December 2006. The net profit for Q3 March 2007, was boosted by extra-ordinary income of Rs 124 crore arising from a reversal of tax provisions. Revenue rose 3.2% to Rs 3772 crore from Rs 3655 crore in the previous year quarter.
As per Indian GAAP, Infosys has predicted an EPS of Rs 80.29 to Rs 81.58 for FY 2008, a growth of 20 - 22%, compared to an EPS of Rs 66.86 in FY 2007. The company has forecast 22.6 - 24.6% growth in revenue for FY 2008, between Rs 17038 crore and Rs 17308 crore. Infosys has considered rupee-dollar conversion rate at 43.10.
For Q1 June 2007, Infosys expects an EPS of Rs 17.84, an year-on- year growth of 24.2%. It also expects a revenue of Rs 3896 crore to Rs 3913 crore, a year-on-year growth of 29.2 – 29.8%
Infosys gave a strong guidance in dollar terms as per US GAAP. It expects the consolidated earnings per American Depositary Share (excluding tax reversal of $29 million in fiscal 2007), between $1.86 and $1.89 for FY 2008, an year-on-year growth of 25.7 - 27.7%. It expects consolidated revenue between $3.95 billion and $4.02 billion, a year-on-year growth of 28 - 30%.
For Q1 June 2007, Infosys expects the consolidated earnings per American Depositary Share at $0.41, a year-on-year growth of 28.2%. It expects revenue between $904 million and $908 million, a year-on- year growth of 37 - 37.6%.
Infosys added 34 new clients during the quarter. There was a gross addition of 5992 employees (net 2,809) for the quarter and 30946 employees (net 19,526) for the year by Infosys and its subsidiaries.