Summary
A Good Augury
The first flush of results is encouraging. Will the trend hold?See the full content of this document
Extract
Business News
Mahesh Nayak
The first flush of results this season looks good. Software bellwether Infosys Technologies reported a 69.98 per cent growth in net profit for the quarter ended March 31, 2007 to Rs 1,144 crore compared to Rs 673 crore in the previous corresponding quarter. The figure was boosted by an extraordinary income of Rs 124 crore from a reversal of tax provisions. Revenues for the quarter rose 43.75 per cent to Rs 3,772 crore from Rs 2,624 crore. For the full year ended March 31, 2007, its net sales and profits were up 45.92 per cent and 56.88 per cent, respectively, to Rs 13,893 crore and Rs 3,856 crore. The BSE it Index gained nearly 4 per cent on Friday (April 13, 2007), but this rise had more to do with the future outlook of the company, whose guidance is expected to be the benchmark for the overall it sector.A report by Morgan Stanley says: "As feared, the rupee- denominated EPS growth guidance came in the low-20s, while the dollar guidance and overall commentary on the demand environment and margins were positive." Meanwhile, there are two key concerns- slowdown in demand in the US and an erosion of margins due to the appreciation of the rupee and a rise in wage costs.Meanwhile, the 23 companies that have come out with their results (till April 13, 2007), have reported a 90 per cent rise in their combined net profit to Rs 1,421.09 crore compared to Rs 748.6 crore in the previous corresponding quarter. Revenues rose 37 per cent to Rs 5,347.7 crore from Rs 3,896 crore.Among others, Ballarpur Industries, Mastek, iGate Global Solutions, Gujarat NRE Coke and Prism Cement also came out with their fourth quarter and annual results. Barring Gujarat NRE Coke, which reported a 220.5 per cent fall in net profit to Rs 51 crore, the others reported profits that were ...See the full content of this document
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