Infosys Q2 profit up 24 pct; meets estimates

Last Updated: Fri, Oct 12, 2012 03:49 hrs

Infosys Ltd, India's No.2 software services exporter, reported a 24 percent rise in quarterly profit, meeting expectations, due to higher demand for its outsourcing services by Western clients looking to cut costs.

Profit at Infosys, whose clients include Bank of America , Volkswagen and GlaxoSmithkline, rose to 23.7 billion rupees ($450 million) for the quarter ended September, from 19.06 billion rupees a year earlier.

Analysts were expecting a profit of 23.8 billion rupees, according to Thomson Reuters data.

Investors had expected an uptick in demand for outsourcing with the global economy showing some signs of stability. Still, the potential for a slideback was alarmingly high, the International Monetary Fund said on Tuesday.

India's $100 billion software and services industry relies on the United States and Europe for about three-quarters of its revenue.

The sector will grow 11-14 percent in the year ending March, estimates the National Association of Software and Service Companies, an industry lobby. That would be down from 16 percent last year and about 30 percent before the global financial crisis.

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