Infosys Q2 profit rises 24%

BANGALORE: Infosys Ltd, India's second-ranked software services provider, reported a 24 percent gain in quarterly profit, as European firms come under pressure to shift more backroom functions offshore to keep their costs in check.

The information technology bellwether caught analysts on the hop in July when it cut its annual sales forecast more deeply than expected - as global economic uncertainty hit tech spending - but its shares have risen by a fifth since its lows that month, beating gains of 13 percent on the benchmark Sensex stock index and nearly 9 percent by market leader Tata Consultancy Services.

Profit at Infosys, whose clients include Bank of America, Volkswagen and GlaxoSmithkline, rose to 23.7 billion rupees ($450 million) for the quarter that ended September, from 19.06 billion rupees a year earlier.

July-September net profit was forecast at 23.8 billion rupees ($448 million), according to Thomson Reuters data. Profit in the previous quarter grew 33 percent from a year earlier.

The recent stock rally has come as investors see some signs of stability for the global economy and hope for an uptick in demand, though the International Monetary Fund this week warned that the United States and Europe could slide back unless they resolved their debt troubles.

IMF head Christine Lagarde has blamed Europe and the US - the mainstays of India's $100 billion software and services outsourcing industry - for companies putting off investment and hiring.