News Column

Infosys Shares See Boost on Earnings

July 12, 2013

Shares in India's Infosys Technologies Ltd rose by 11 per cent on Friday after the company reported better-than-expected earnings and maintained its yearly revenue growth outlook.

The country's second-largest software services firm said net profit from April to June was 23.8 billion rupees (397 million dollars), representing a 3.7 per cent year-on-year increase.

The firm, based in the southern city of Bangalore, kept its full year dollar sales growth guidance at 6 to 10 per cent. This came as a big relief to its investors in the backdrop of global investment bank Morgan Stanley warning that Infosys may revise its guidance downwards this month.

Shares surged on the news, impacting the benchmark Sensex, which rose 0.78 per cent or 153.61 points to 19,829.69.

Indian IT firms have been hit by the eurozone crisis, the US economic slowdown and a sharp devaluation of the rupee. Infosys, in particular, has been losing market share to rivals and has seen its share value drop.

Last month, the firm recalled its former chairman, Narayana Murthy - one of the group's founding members - from retirement and appointed him executive chairman for five years.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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