Infosys beats estimates, Q3 net up 3%

Infosys reported a 2.7% rise in consolidated net profit for the third quarter ended December 31, 2009 (Q3FY10) at Rs 1,582 crore when compared with Rs 1,540 crore in the previous quarter of the current fiscal (Q2FY10) that beat Bloomberg UTV estimate of Rs 1,479 crore on the back of cost efficiencies and higher volume growth.

Revenue grew by nearly 3% to Rs 5,741 crore on QoQ basis. Infosys' result affirms the rebound in the US, European economies that are now reflecting in the financials of the Indian companies, which are directly linked to those economies.

"Global economic recovery seems to be led by the US and the financial services," said S Gopalakrishnan, CEO and managing director. "Even though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery."

Quick Takes
Revenue, profit figure above market estimates
Increased  FY10 Rupee EPS by 7% to Rs 107 from Rs 100
Revenue growth in rupee growth estimated 3.6-3.8% from earlier estimate of 1.2-1.7%
Dollar revenue growth of FY 2010 now estimated to grow positively

Rupee terms(QoQ)
Net profit up 2.7% at Rs 1,582 cr vs Rs 1,540 cr
Revenue up 2.79%  at Rs 5,741 cr vs Rs 5,585 cr
EBITDA up 5.43% at Rs 2,038 cr vs Rs 1,933 cr

Operational metrics
EBITDA margin up 89 bps at 35.50% vs 34.51%
SGNA as % of sales at 12.09% from 12.34%
PAT margin at 27.03% from 27.57%
Added 32 clients
Gross addition of 8719 employees, net addition of 4429
Revenue from North america incresed to 66.6% from 65.9%
Revenue from Europe at 21.9% from 23.2%
Reveuue from BFSI vertical increased to 34.6% from 33.5%
Revenue from manufacturing & telecom remain steady
Added one client each in $90, $100 & $200 mn segment
Top client contribution increased 10 bps to 4.7% from 4.6%
Top 10 client contribute 27.5% from 26.2%
Utilisation including trainees inched to 76.2% from 73.2%
Volume growth of 5.27%

Rupee Guidance Q4 FY 2010
Revenue seen in Rs 5,675 cr-Rs 5,721 cr range, (implies dip -1.15% to -0.34% on QoQ)
EPS seen in Rs 25.62-25.83 range, (implies dip -7.68% to -6.9% QoQ)

FY 2010
Revenue seen b/w at Rs 22473-Rs 22519, YoY growth of 3.6% to 3.8%
EPS seen b/w Rs 106.85-107.06, YoY growth of 2.2% to 2.4%

Q3 FY 2010 dollar terms(QoQ)
Revenue up 6.8% at $1232 mn from $1154 mn
EPS at $0.59  from $0.56 b  up 5.4% Q/Q

Q4 Dollar Guidance
Revenue seen in $1240-1250 mn range, implies growth of 0.65-1.46% QoQ
EPS seen at $0.56, implies negative growth of 5.08% QoQ

FY 2010 Dollar Guidance
Revene seen b/w $4.75-4.76, implies growth of 1.8-2% YoY
EPS seen at $2.26, implies growth of 0.4% YoY

source UTV