BENGALURU (dpa-AFX) - India-based software exporter Infosys Technologies Ltd. (INFOSYSTCH, 500209, INFY) Friday said fourth-quarter profit increased from the prior year, and met wall Street expectations. However, revenues, despite rising year-over-year, missed estimates. The stock fell more than 6 percent in afternoon trading on the Bombay Stock Exchange.
CEO & MD Dr. Vishal Sikka said, 'We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning. Our focused employee engagement initiatives over the last few months have resulted in containing employee attrition to one of the lowest in recent times.'
Profit for the quarter climbed to $498 million from $487 million reported last year. Earnings per share rose to $0.44 from $0.43.
On average, 10 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues increased to $2.159 billion from $2.092 billion. Analysts expected revenues of $2.24 billion.
In rupee terms, net profit increased to 30.97 billion Indian rupee from 29.92 billion rupee in the prior year. Revenues advanced to 134.11 billion rupee from 128.75 billion rupee.
Quarterly annualized attrition for Infosys Limited declined to 13.4 percent in the fourth quarter, compared to 23.4 percent in the first quarter. Gross employee additions were over 50,000 for the year.
Infosys said its board recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share for every ADS held, as on a record date to be determined.
The company's current policy is to pay dividends of up to 40 percent of post-tax profits. The Board has decided to increase the dividend pay-out ratio to up to 50 percent of post-tax profits effective fiscal 2015.
The board recommended a final dividend of 29.50 rupee per share for fiscal 2015. This translates to a final dividend of $0.47 per share pre-bonus and $0.24 per share post bonus.
Looking ahead, for the fiscal year ending March 31, 2016, revenues are expected to grow 10-12 percent in constant currency terms.
Revenues are expected to grow 6.2 to 8.2 percent in US dollar terms.
Infosys also said today that it entered into a definitive agreement to acquire Kallidus Inc. and its affiliate, a provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients.
This acquisition is an all-cash deal for a total consideration of $120 million including retention bonus and a deferred component.
Kallidus delivers a cloud hosted platform for mobile websites, apps, and other digital shopping experiences across mobile, tablet, desktop, in-store, and all emerging channels to large retail clients globally.
The stock fell 6.2 percent on the Bombay Stock Exchange to 1,992 rupee.
INFY, which closed at $34.96 on Thursday on the NYSE, declined 8.2 percent in pre-market activity.
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