Industrial output rebounds. Grows by 5.9% in November

India’s industrial production bounced back sharply in November, comfortably beating the consensus estimates of economists, data released by the Government showed on Thursday.The sharp reversal in the erratic IIP data could boost hopes of a policy easing by the RBI sooner or later. The Central bank is scheduled to meet on January 24. The factory output, as measured by the index of industrial production (IIP), grew by 5.9% in November versus a 5.1% contraction in the previous month, data released by the Commerce Ministry showed today. The Government today revised October’s industrial production growth, from a preliminary figure of -5.1%, to -4.7%. Industrial output in the April to November 2011-12 period grew by 3.8% compared to the expansion of 8.4% in the corresponding period a year earlier.

Infosys Q3 net profit up 24% QoQ

Infosys Technologies Ltd. has reported a consolidated net profit of Rs. 23.72bn for the quarter ended December 31, 2010 as against Rs. 19.06bn in the previous quarter. This implies a Quarter-on-Quarter growth of 24.4%. Consolidated net sales for the reporting quarter (October-December 2011) stood at Rs. 92.98bn versus Rs. 80.99bn in the preceding quarter, showing a sequential improvement of 14.8%. At the time of unveiling the Q2 FY12 results on October 12, the company had forecast revenues in the range of Rs. 88.26bn and Rs. 90.12bn for the third quarter. The operating profit for Q3 FY12 stood at Rs. 28.99bn compared to Rs. 22.81bn in the preceding quarter. EBIT margin for the reporting quarter stood at 31.17% versus 28.16% in the second quarter. The Earnings Per Share (EPs) for Q3 FY12 stood at Rs41.51 as against Rs. 33.36 in the July to September quarter. EPS for Q3 FY12 was expected to be in the range of Rs. 38.51 and Rs. 39.20.

The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry, said S. D. Shibulal, CEO and Managing Director.

Notwithstanding short-term challenges, we are focused on long-term growth opportunities by investing in platforms and solutions — which will accelerate innovation, enhance returns for our clients and deliver higher business value.

Other Highlights for Q3 FY12: —

• 49 clients were added during the quarter by Infosys and its subsidiaries.
• Gross addition of 9,655 employees (net addition of 3,266) for the quarter by Infosys and its subsidiaries.
• 145,088 employees as on December 31, 2011 for Infosys and its subsidiaries.

The global currency market continues to be volatile with the Indian rupee depreciating by 11% during the quarter, said V. Balakrishnan, Member of the Board and Chief Financial Officer. Managing extreme currency volatility in an uncertain economic environment is going to be a challenge for the industry. We believe our focus on high-quality growth combined with our flexible financial model will position us better during these challenging times.