Infosys Ltd, the second-largest exporter of software services in India, made an official statement today, projecting that its dollar-denominated revenue will increase from 7 to 9% for the 12 months that started on April 1st. The full-year sales growth forecast of the company surpassed the median analysts estimate of an increase between 6 and 8.3%. According to the companys statement, its earnings for the fourth quarter grew by 25%.
The net income of the Indian software company rose to 29.92 billion rupees (496 million dollars) in the three months ended March 31st, the company statement revealed today. The result exceeded the median analysts forecast for a a net profit of 28 billion rupees. The companys sales for the fourth quarter jumped to 128.8 billion rupees, beneath the median analysts projection of 129.7 billion rupees.
The Chief Executive Officer of Infosys Ltd – S.D. Shibulal said in the statement, which was cited by the Wall Street Journal: “We have been able to double our growth rate for the full year compared with last year, though performance in the last quarter of FY14 has been disappointing.”
The company managed to improve its performance during the fourth quarter due to reduced costs and increasing demand in Indias IT outsourcing sector, sealing more outsourcing contracts, even though in March its shares dropped by 8% in a single day. Indias IT outsourcing sector is estimated to about 118 billion dollars.
In March, the company shared that its sales growth in the current fiscal year is expected to be closer to the lower end of its estimates due to the fact some business segments reduced technology spending.
As reported by the Wall Street Journal, the Chief Executive Officer of Infosys Ltd Mr. Shibulal shared that the company will “remain firmly focused on building the growth momentum by making all the necessary investments in our business”.
Infosys Ltd was 1.44% up to trade at 46.55 Indian rupees today, capping a one-year change of +41.22%. The 56 analysts offering 12-month price targets for Infosys Ltd have a median target of 3,834, with a high estimate of 4,800 and a low estimate of 2,100. The median estimate represents a 18.51% increase from the last price of 3,235.15.
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