Infosys Q1 net falls 2.6 pct, lags forecast

BANGALORE, July 13 (BestGrowthStock) – Infosys Technologies Ltd
(INFY.BO: ), India’s No. 2 software services exporter, lagged
market estimates with a surprise 2.6 percent drop in quarterly
profit as the European debt crisis and salary increases took
shine off improving U.S. demand.

The Nasdaq-listed firm (INFY.O: ) said on Tuesday net profit
in its fiscal first quarter ended June 30 fell to 14.9 billion
rupees ($318 million).

A Reuters poll of brokerages had forecast a profit of 15.56
billion rupees for Bangalore-headquartered Infosys, which
counts Goldman Sachs (GS.N: ), BT Group (BT.L: ) and BP (BP.L: )
among its main clients.

Infosys, larger rival Tata Consultancy Services (TCS.BO: )
and third-ranked Wipro (WIPR.BO: ) have all stepped up hiring and
raised salaries as demand for outsourcing grows in an improving
global economy.

But a debt crisis in Europe, the second-largest market for
Indian outsourcers after the United States, has clouded the
demand outlook from the continent, while a weaker euro crimps
margins for the export-driven companies.

Infosys shares, valued at about $35 billion, hit a record
high on Monday and are up 11 percent this year, outpacing the 7
percent rise in the sector index (.BSEIT: ).
($1 = 46.8 rupees)
(Reporting by Bharghavi Nagaraju; Editing by Ranjit
Gangadharan and Anshuman Daga)

Infosys Q1 net falls 2.6 pct, lags forecast