India's Infosys posts profit rise but shares fall

India's second-biggest outsourcer Infosys said Tuesday that quarterly net profit rose nearly 16 percent but its shares fell in early trade as the figures lagged market estimates. Consolidated net profit in the three months to June rose 15.7 percent year-on-year to 17.22 billion rupees ($380 million), below forecasts of 17.3 billion rupees. Revenues rose 21 percent to 74.85 billion rupees for the first quarter, by international accounting standards, the company announced after a board meeting in the southern city of Mysore. Shares in the firm tumbled as much as 5.81 percent to 2,749 rupees in early trade, after the data was announced, disappointing analysts in terms of earnings guidance. The Bangalore-based software giant, which in June announced a change in name from Infosys Technologies Ltd to Infosys Ltd, gained 26 extra clients for the quarter and made a net addition of 2,740 employees. The company had a total of 133,560 employees as of June 30, 2010. Infosys has begun to restructure its top management, with veteran banker K.V. Kamath as its new chairman set to replace founder chairman N. Narayana Murthy in August.