(Updates with sales forecast cut in third paragraph.)
Jan. 12 (Bloomberg) -- Infosys Ltd., India’s second-largest software exporter, reported third-quarter profit that beat analysts’ estimates as customers outsourced more work and the rupee’s decline boosted the value of repatriated earnings.
Net income rose 33 percent to 23.7 billion rupees ($458 million) in the three months ended Dec. 31, from 17.8 billion rupees a year earlier, Bangalore-based Infosys said today. That compares with the 22.8 billion-rupee median of 44 analyst estimates compiled by Bloomberg.
Infosys shares fell after the company cut its full-year forecast for sales in dollar terms, citing weaker growth in developed economies including Europe, which together with North America accounts for more than 80 percent of revenue. The company joins Accenture Plc in posting better-than-expected quarterly earnings as clients outsource information-technology services to reduce costs.
“They beat some estimates because of forex, not because of improvements in their core business,” said Pralay Kumar Das, an analyst at Elara Securities Ltd. in Mumbai. “What the market looks at though is the future.”
Infosys dropped as much as 7.7 percent, the largest intraday decline since Nov. 11, and traded 7.4 percent lower at 2,618.50 rupees as of 9:16 a.m. in Mumbai. The stock was the biggest contributor to the the benchmark Sensitive index’s 0.6 percent decline.
Dollar Sales Outlook
The company, which designs software programs, maintains computers and provides IT and outsourcing services for clients including BT Group Plc, said sales in the year ending March 31 will range from $7.029 billion to $7.033 billion, down from the $7.08 billion to $7.2 billion it forecast in October.
“The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry,” Chief Executive Officer S.D. Shibulal said in the earnings release.
Sales in the fourth quarter may range between $1.806 billion and $1.810 billion, Infosys said today.
The company raised its outlook for sales in rupee terms. Full-year revenue will range from 342.7 billion rupees to 342.9 billion rupees, higher than the October projection of 335 billion rupees to 340.9 billion rupees.
The rupee’s 7.7 percent decline against the dollar in the three months ended Dec. 31 would have boosted margins at India’s software exporters, Pratik Gandhi, an analyst at IDBI Capital Markets Services Ltd. in Mumbai, said before the earnings were released.
Third-quarter revenue rose 31 percent to 93 billion rupees, exceeding the 91.7 billion-rupee median of 48 analyst estimates.
--Editors: Suresh Seshadri, Lena Lee
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