Infosys Jumps on Sharply Higher Earnings

The shares add 3.5% in an otherwise brutal tech market.
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Infosys Technologies

(INFY) - Get Report

shined in a brutal market for tech shares Thursday, announcing improved quarterly earnings and raising its outlook for the year.

Shares of the IT consulting and software services company jumped 3.54%, or $2, to $58.50 after the company reported earnings of 44 cents a share for its first quarter ended June 30. That's an improvement over the 33 cents a share earned by the Indian company in the same quarter last year, and it surpassed analysts' estimates.

First-quarter revenue for Infosys, at $233.3 million, was up 49.26% over last year. Net income was $58.3 million, compared with last year's $42.8 million.

"Increased efficiency and optimization of expenses have helped us maintain our margins despite the increase in salary cost," the company said in a statement. "We have proactively hedged our net receivables to mitigate the impact of rupee appreciation on our margins."

The company acquired 22 new clients during the quarter, notably in the financial services industry and the automotive and aerospace sector, according to a press release.

"In spite of the challenging environment, Infosys continued to invest in sales, marketing and new services, while improving existing services," said chief operating officer S. Gopalakrishnan. "New services introduced over the last three years contributed significantly to current revenues."

Based on these developments, Infosys raised its outlook, predicting earnings of 45 cents per share for the second quarter and between $1.81 and $1.82 per share for the full year.