| Infosys results fail to impress markets |
The market is all buzz with Infosys results. The company has posted very good results in the first half of the current year. The company has recorded a total income of Rs.836 crore and a net profit Rs.281 crore. This is almost on par with last year's annual results of Rs.921 crore and Rs.293 crore respectively, indicating the phenomenal growth posted by the company.
Infosys' major market is North America, accounting for 3/4ths of its revenues. This share has however marginally fallen as compared to last year, and the increase is seen in the business in the European region. Europe accounted for 14 percent share in the total revenue in the second quarter of last FY. This quarter, the same has increased to 17 percent. India accounts for just 1 percent of the total revenues.
Major revenues are from the services provided by the company, which account for 97.3 percent of the total revenues. Product development accounts for just 2.7 percent. The former infact has increased marginally as compared to last year. Of the revenues from services offered, 22 percent is from maintenance and 44 percent from development. Other services like Package implementation,Consulting and Testing & Engineering, account for another 22 percent.
The services of Infosys are mainly to the Insurance, Banking and Finance sector, which accounted for 34 percent of the revenues this quarter. The Manufacturing, Telecom and Retailing sectors account for 17.5 percent, 19.4 percent and 7.1 percent respectively. The other services like Utilities, Transportation & logistics and other services account for 22 percent.
Infosys' internet and e-commerce related revenues accounted for 31.4 percent of the total revenues in Q2, up from 28.7% in Q1. This is an increase from just 10.3 percent in Q2 of FY99. Major chunk of revenues is from the Distributed Systems, accounting for 42.8 percent.
In the 2nd Quarter of the current year, Infosys has added 27 clients to its list. The company's revenue concentration is in the hands of the top five clients, which account for nearly 25 percent of the total revenues.
Infosys has declared an interim dividend of Rs.2.50/- a share.
Despite all the hype and hoopla the results of Infosys failed to impress the markets today largely because the growth in revenues and the bottomline was at best as per expectations and this had already been factored into the market price of Infosys.
Tanuja R Nemivant Feedback Rate this article