Millennium Post

Infosys quarterly net profit rises 24% to Rs 2,369 crore

It major Infosys on Friday reported a 24.29 per cent jump in consolidated net profit to Rs 2,369 crore for the second quarter ended 30 September.

The company’s revenues were up 21.7 per cent to Rs 9,858 crore in the second quarter from Rs 8,099 crore in the year-ago period, Infosys said in a BSE filing.

The company had posted a net profit of Rs 1,906 crore for the July-September quarter of the previous fiscal [2011-12]. ‘Global economic uncertainties continue to face the industry. We have increased employee wages, used some of our cash in a transformational acquisition of a consulting business and enhanced our investment in R&D and solutions,’ Infosys CEO and managing director S D Shibulal said.

Consequently, the company has taken a move that will bring respite to its employees, IT major Infosys on Friday said that it will increase salaries for its staff in India by about six per cent.

‘We have taken a decision to give compensation increase average of six per cent offshore and 2-3 per cent average onsite. This will come effective from 1 October for offshore and 1 January for onshore,’ Infosys CEO and MD S D Shibulal told reporters. Infosys was the only company among the large software services firms, which had not hiked salaries so far. It had cited the uncertain business environment for the decision and had said it will take a call on the same in October.

In 2009 too, Infosys had deferred hikes and gave it out in the middle of the year when the business sentiment improved. This time, however, Infosys did give promotions to 20,000 employees earlier this year. When asked about the impact of the wage hike on margins, the company said in July, it had said its operating margins could decline.    

Sensex dips 130 points on results

The Sensex  dropped by nearly 130 points to close at 18,675.18 on lower-than-expected Infosys earnings and a cut in its full-year sales guidance, amid slowing industrial production growth in August.BSE benchmark index opened nearly 78 points lower dragged down by Infosys scrip which tanked nearly 8 per cent on reports the IT major’s July-September quarter revenues and profits failed to beat market expectations.   
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