Infosys profit up 5 percent, misses expectations

Associated Press Modified: October 12, 2012 at 1:01 am •  Published: October 12, 2012
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Infosys said Friday that it hiked wages by 6 percent for workers in India and by 2 to 3 percent for workers outside of India. "That means we are very confident of our future," Shibulal said.

The company also made a surprise announcement that V. Balakrishnan will step down as chief financial officer. Balakrishnan will continue as a member of the board and oversee three business areas: business process management, the India business unit, and Finacle, Infosys's proprietary software for banks. Rajiv Bansal, currently the vice president of finance, will take over as CFO November 1.

The September quarter's revenue guidance does not factor in Infosys's acquisition of Swiss management consulting firm Lodestone Holding, announced in September. Infosys paid 330 million Swiss francs ($353 million) for the company, which it says will bring in 850 employees and 200 clients and boost total consulting revenue to over $1 billion. Shibulal said Friday the deal should close in "the next week or so."

In rupee terms, net profit grew 24.3 percent to 23.7 billion rupees reflecting the rupee's weakness against the dollar. Rupee revenue grew 21.7 percent to 98.6 billion rupees.

Infosys gets nearly two-thirds of its revenue from the United States and over 98 percent of its revenue from outside India.