India's Infosys quarterly profit dips but forecasts upturn

Indian outsourcing giant Infosys Technologies reported Tuesday quarterly net profit slipped, but forecast better times ahead despite a rising rupee that could eat into earnings.
Infosys, the country's second-largest outsourcing exporter by revenues, said consolidated net profit in the fiscal fourth quarter to end-March 2010 fell 0.9 percent year on year to 16 billion rupees (359 million dollars).
"We have emerged stronger from a tough quarter," company chief executive S. Gopalakrishnan told India's CNBC-TV network.
"I strongly believe that unless something dramatic happens we are again back on a growth curve," he said. Clients "are investing in growth."
Infosys' shares were up 2.83 percent or 75 rupees to 2,759 rupees in afternoon trade on the back of the earnings announcement.
Company chief financial officer V. Balakrishnan said the strengthening rupee was "a cause for concern" and would put pressure on earning margins.
India's outsourcing industry bills in dollars and a weaker US currency translates into lower Indian rupee earnings.