Business

Infosys profit tops estimates on weak rupee exchange

Infosys bosses at the firm's recent annual general meeting
Image caption Infosys has downgraded its forecast for revenue growth for the financial year

Infosys, India's second-largest computer software services company, reported a 33% rise in profits as it benefited from a weak rupee.

Net income rose to 23.7bn rupees ($457m; £298m) in the three months to the end of December, up from 17.8bn in the same period a year earlier.

Infosys got a boost when it exchanged foreign earnings into Indian rupees.

The rupee was the worst-performing Asian currency in 2011.

More than half of Infosys' revenue is generated in foreign currencies in the US and Europe.

However, Infosys was pessimistic about the coming year.

"The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry," said Infosys Chief Executive S D Shibulal in a statement.

As a result, the company downgraded its growth forecast for the financial year ending 31 March 2012

It now predicts an increase of 16.4% in dollar revenues, down from its previous growth estimate of between 17.1% and 19.1%.

"They have scaled down the dollar revenue guidance, which is a disappointment," said Manish Sonthalia from Motilal Oswal Amc in Mumbai.

"This means the fourth-quarter numbers are likely to be flat, and a lot will depend on how the rupee moves," he added.

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