Infosys Sees Financial Trouble Despite Profit Increase

Infosys Sees Financial Trouble Despite Profit Increase

Infosys, an IT service company, cautioned of tougher times over the next few years despite the boost in its profit for the first quarter of 2009. The firm incurred a net income of $313 million for Q1 of this year, a 1.6 percent increase from that of the same period in 2008.
 

However, Infosys' revenue dipped by 2.9 percent, accounting to only  $1.1billion. During the second quarter of 2009, Infosys is looking into a 7.1 to 8.7 per cent drop in revenue, which could reach  $1,110 million to  $1,130 million.

 

Infosys chief executive and managing director S Gopalakrishnan noted, “We believe that in the short term the global economic environment will continue to be challenging."

 

“We are working closely with our clients to help them navigate the downturn. We continue to invest in the future to take advantage of the growth opportunities in the medium to long term," Gopalakrishnan added.