Infosys beats estimates for Oct-Dec 2016 quarter

The Vishal Sikka-led firm bets on innovation through automation for future growth; cuts revenue growth projection for FY17; profit grows 7 per cent year-on-year to H3,708 cr; revenue up 8.6 per cent
An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. | Reuters
An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore, February 28, 2012. | Reuters

BENGALURU: Infosys, India’s second-largest IT services major by revenue, on Friday reported a better-than-expected year-on-year profit growth of seven per cent for the October-December 2016 quarter at Rs 3,708 crore. The firm’s revenue at Rs 17,273 crore was also in tune with market estimates, showing an 8.6 per cent growth over the same period last year.
However, on a quarter-on-quarter basis, revenue declined 0.2 per cent, while net profit rose from Rs 3,609 crore. Notably, the company revised its rupee revenue growth projection for the full financial year from 8-9 per cent to 8.4- 8.8 per cent. Liquid assets including cash and cash equivalents saw a nominal increase compared to the previous quarter.

While these assets were valued at Rs 35,640 crore as on September 30, 2016, these rose to Rs 35,697 crore in the December quarter. During the quarter, the firm also paid interim dividend including tax of Rs 3,029 crore.
Infosys CEO and managing director Vishal Sikka said the management had laid strong emphasis on automation and innovation through automation for future growth. “We continue to make solid progress. We are happy with the results,” he added.

More clients, less attrition
This quarter also saw a reduction in attrition rate on a quarter-on-quarter basis, said Infosys chief operating officer U B Pravin Rao. However, compared to the same period last year, the number of people quitting has marginally gone up. While consolidated attrition was 18.4 percent as on December 31, 2016, for the same period last year it was 18.1 per cent. The company employs 1.99 lakh people. Seventy-seven clients were added during the quarter, of which two are in the $75 million-plus revenue category. North America continued to lead in client share with 62 per cent of total clientele revenue, followed by 22.2 per cent from Europe. Revenues from India went up to 3.4 per cent in December 2016 from 2.8 per cent last year.

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