Infosys posts drop in profit

But reports deals with 38 new clients

Infosys blames the global economic climate for its tough quarter

IT services and consulting firm Infosys has posted a drop in profits in its first quarter of 2010.

The firm’s net income after tax was £216m for the quarter, a drop of 6.6 per cent on first-quarter 2009.

However, revenue climbed to £900m for the quarter, representing quarter-on-quarter growth of 4.8 per cent.

The company said it had tied up deals with 38 new clients during the quarter and recruited nearly 9,000 new employees. However, because of redundancies and staff moves, the firm’s net headcount fell by just over 1,000 during the quarter.

S Gopalakrishnan, chief executive officer and managing director at Infosys, blamed the economic environment for the performance, but remained optimistic for the future.

“While the global economic environment remains uncertain, we continue to see greater demand for services from our clients,” he said.

“The challenge for the industry is to enhance the investment to grow the business, given the uncertainty in the environment.”