Infosys turns in lacklustre results, CFO steps down

The outsourcer's shares took a tumble amid an unchanged yearly outlook and no update on what impact the acquisition of Lodestone will make to its bottom line.
Written by Jo Best, Contributor

India's second largest IT company Infosys has reported flat revenues for the second quarter of this year amid ongoing turbulence in the global economy.

Revenues for the quarter ending 30 September were up 2.9 percent year on year Infosys announced on Friday, $1.8bn. Net income after tax increased by almost five percent compared to last year, hitting $471m.

"Global economic uncertainties continue to face the industry" — SD Shibulal, Infosys

The outsourcer said it expects revenues for the financial year ending 30 March to hit around five-percent growth at $7.3bn. Analysts had been hoping for a better set of financials and a increase in yearly outlook, causing the stock price to fall by several percent after the results announcement.

"Global economic uncertainties continue to face the industry," SD Shibulal, Infosys CEO, said in a statement. "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. These initiatives will position us well in the industry and provide a strong platform for future growth."

The Q2 figures did not include the results from Lodestone, the SAP consulting business that Infosys bought in September for 330m Swiss francs ($354m). With the acquisition expected to close this month, Lodestone's results will figure in Infosys' financials in the coming quarters.

Infosys also confirmed on Friday that its CFO V Balakrishnan is to leave the company after six years at the head of its finance department, and will be replaced in the role by Rajiv Bansal, currently Infosys' VP of finance, from 1 November.

Balakrishnan will remain on the board of Infosys and head up its BPO, Finacle and the India business units.

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