Infosys Q1 FY13 results: Ten important takeaways :ET

 Country's second largest software firm Infosys on Thursday reported a 32.92 per cent jump in consolidated net profit to Rs 2,289 crore for the first quarter ended June 30, 2012. 

The company had posted a net profit of Rs 1,722 crore for the April-June quarter of the previous fiscal (2011-12), Infosys said in a filing to the BSE.

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ET takes a look at the 10 important details related to the Infosys results: 

1) Guidance: Nearly halved to around 5% from 8-10%. No more quarterly guidance. 

Market environment difficult but Infosys looks to be in worse shape than rest. Recognition finally by Infosys that its credibility is getting damaged with targets it cannot meet. 

2) Hiring: Plan to hire 35,000 this year on track; wage freeze stays but 20,000 to get promotions instead of 16,000 earlier. 

Although attrition is holding steady there is a danger that staff may eye better-paying rivals. 

3) Cash Pile: The company is still sitting on some $3.7 billion of cash from $3.8 billion earlier, the slight drop caused by dividend payments. Keeps hinting at acquisition but the wait continues. Risk aversion gone too far? 

4) Pricing: For the first time, pricing of contracts fell 3.7% in Q1 compared to the previous quarter One of the reasons why margins dipped despite rupee depreciation. There's little immediate solace expected. 

5) Projects: Company says clients aren't cancelling projects, just deferring them. 

Signs aren't too encouraging given that a UK utility effected a ramp down in business and US consumer confidence down. 

6) Strategy: Infosys 3.0, with a focus on consulting, products and platform, said to be well on course. There's a risk of investors turning wary if the talk of transformation goes on for too long without results in sight. 

7) Verticals: Business from banking, financial services segment slipped sequentially 

Significant because it's the bread-and-butter business of Infosys. Signs of tough times in Europe, US. 

8) Geography: Business from Europe down 8% sequentially Again, no surprises here. 

9) Sales & Marketing: Spending on this crucial effort, at $86 million, is lower than a year ago. Concerns about the front end of Infosys. 

10) Service Offerings: Business IT services have grown as a proportion of revenue but not consulting and platforms, where Infosys says it is a serious player. Company may have a vision for the future, but what about the present?