Infosys Profit Beats Estimate; Increases Forecasts

Infosys Technologies Ltd., India’s No. 2 software exporter, posted profit that beat analysts’ estimates and raised its earnings forecasts as the rebounding global economy boosts demand for information-technology services.Net income rose 13 percent to 17.4 billion rupees ($394 million) in the three months ended in September, Bangalore-based Infosys said today. That compares with the 17 billion rupee average of 31 analyst estimates compiled by Bloomberg. Infosys will also pay a special dividend of 30 rupees a share.Infosys joined Intel Corp. among major technology companies indicating corporate spending is recovering. Chief Executive Officer S. Gopalakrishnan, who cut prices in 2009, termed the economic environment as “challenging” while the appreciation of the rupee damps repatriated earnings of Indian exporters.“The results and guidance are very good but the only concern is that the rupee is getting stronger,” said D.K. Aggarwal, who manages about $100 million as chairman of SMC Wealth Management Services Ltd. in New Delhi.
Thanks to Business Week

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