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In line with expectations, Infosys logs 3.7% rise in first quarter net

IT major Infosys on Friday posted a near 4 per cent increase in its consolidated net profit for the April-June quarter, meeting market expectations, even as the firm maintained a 'cautiously optimistic' approach keeping its US dollar revenue guidance unchanged for this fiscal.
The Bangalore-based firm, which last month saw the return of its co-founder NR Narayan Murthy in the backdrop of a below than expected performance in the past quarters, added that wage hikes announced in June would have an impact of about 300 basis points on its margins in the next quarter.

The company's consolidated net profit rose by 3.7 per cent to Rs 2,374 crore for the April-June quarter against Rs 2,289 crore in the year-ago period. Its consolidated revenues rose 17.2 per cent to Rs 11,267 crore from Rs 9,616 crore in the year-ago period.

'Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year,' Infosys CEO and managing director S D Shibulal said.

While, India's second largest software services exporter kept its US Dollar revenue guidance unchanged at 6-10 per cent for 2013-14 fiscal, it revised its rupee revenue guidance upwards to 13-17 per cent from 6-10 per cent earlier on account of depreciation in the Indian currency.
Infosys maintained its 'cautiously optimistic' approach due to cross currency movements and regulatory changes in the US, Canada and Australia.
'We operate in an environment which has several challenges. Discretionary spend continues to be under stress.

There are regulatory changes happening in various parts of the world. We have seen changes in Canada and as recent as a week back, in Australia. US immigration bill is in progress. We remain cautiously optimistic. We have not revised our guidance,' Shibulal said.
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