Infosys Results: Mohandas Pai Resigns

Bangalore, Apr 15: Infosys Techonologies, the IT giant based in Bangalore announced its Q4 and its year-end (FY11) results together. The company reported revenue growth of 2% in Q4 when compared over the Q3 results. Where as for financial year 2011, the company reported growth in revenues by 20.9% over the previous year. Its revenue for the year-end, March 31, 2011, was INR 7,250 crore. Although early reactions from the analyst community had been of caution.

Besides declaring its result the company also announced the resignation of T. V. Mohandas Pai, Member of the Board of Directors with effect from June 11, 2011, post the company's annual general meeting. A written statement issued by N. R. Narayana Murthy, Chairman and Chief Mentor said “Mohan has been an early adopter and a keen anchor builder of Infosys. It is difficult to imagine Infosys without Mohan"s passion, commitment, joie-de-vivre and intellect. We all know that he is taking this painful decision, since he has much bigger projects in the horizon - nation building. The Board and every Infoscion thank Mr. Mohandas Pai for his wonderful contribution and wish him great success in his future endeavours."

Since no appropriate reason was given, and the conservative forecast for the next quarter was muted, the markets are viewing it with a negative lens, as the stock has been sliding, taking the Sensex with it. It has already fallen by 270 points (8% in value). Meanwhile Sensex has fallen by 313 points reflecting 1.59%.

The net profit for the quarter ended March 31, 2011, was INR 1,818 representing a growth of 17.1% when compared over the same quarter from previous year.

Commenting on the demand environment, S. Gopalakrishnan, CEO and Managing Director said, "We expect the demand environment to be normal this year for the industry". He further added, “We have created a structure with strong customer driven vertical focus and have enhanced our investment to take advantage of the opportunities we see in the market."

On the liquidity front the company as on March 31, 2011, had cash and cash equivalents, INR 16,810 crore compared to INR 15,819 crore as on March 31, 2010.

“We are seeing growth opportunities emerging in the market place" said V. Balakrishnan, Chief Financial Officer.

During the quarter, Infosys and its subsidiaries added 8,930 employees (gross). The net addition during the quarter was 3,041.

“We have had a great year at Infosys. We recruited 43,000 people, had 1.6 million person days of training and have made 26,000 offers at campus for FY12" said T. V. Mohandas Pai, Member of the Board and Head – HRD and Education & Research. “Spark reached out to 1,87,000 students during the year and Campus-Connect touched 33,047 students. We have brought attrition down to normal levels and substantially improved our investments on people" Pai added.

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