Telecom Lead India: IT major Infosys has posted revenues
of $1,752 million for Q1 FY12, up 4.8 percent, as compared to $1,671 million
for Q1 FY11.
The company posted Net Income of $416 million for the
quarter ended June 30, 2012, up 8.3 percent, as compared to $384 million for Q1
FY11.
The company has earned 10.1 percent of the total revenues
from services for telecom industry, down from 10.6 percent for the quarter
ended June 30, 2011.
On the other hand, Business IT services segment fetched
64 percent of the total revenues, increased from 62.7 percent for Q1 FY11.
In terms of regions, Infosys fetched 64.1 percent of the
total revenues from North America, 21.4 percent from Europe, 2 percent from
India and 12.5 from rest of the world.
During the quarter, a European telecom company partnered
with Infosys to implement its next generation security platform on niche
technologies such as Internet Protocol version 6 (IPV6).
Additionally, a semiconductor major selected Infosys for
the development, integration and validation of its firmware solution built on
the next generation tablet and smartphone platforms.
The company said a North American insurance company has
selected Infosys to upgrade its enterprise telephony infrastructure and enhance
the stability, scalability, infrastructure availability to customers.
Furthermore, Municipal government authorities of a North
American city has also engaged with Infosys to conduct a security threat and
risk assessment of the Voice-over-IP (VoIP) solution for its unified
communication initiative to ensure compliance with various security standards.
Under its Enterprise Mobility segment, Infosys is
creating a tablet-based solution on Infosys intellectual property (IP) for a
South African bank to help its sales staff customize and sell financial
products to its customers.
Our focus on Infosys 3.0 and building tomorrow’s
enterprise coupled with disciplined execution will help us deliver high-quality
growth, despite challenges seen in the global economic situation resulting in
slower IT spends by large corporations,” said SD Shibulal, CEO and managing
director of Infosys.
For the fiscal year ending March 31, 2013, Infosys
expects revenues of $7.343 billion, with 5 percent
y-o-y growth.
Infosys’ revenue growth for 1QFY13 was lower than
estimates largely due to a one-time reversal of $15mn of revenues from one
client because of prudence. Volumes were up by 2.7 percent QoQ, which was above
our estimates. The reduction in productivity was a negative surprise, though a
part of it was due to mix change. The reduced growth guidance is largely due to
cross currency impact and lower realizations rather than volumes, we
understand. We believe that, growth rates for Infosys will improve at a faster
pace, once there is revival in the industry growth,” said Dipen Shah, Head
of PCG (Private Client Group) Research, Kotak Securities.
