BANGALORE: Software exporter Infosys beats Street estimates as its quarterly net profit shoot up by 28.6 per cent at Rs 3,096 crore on account of increased sales when compared to the same period last year. The company saw a sequential growth rate of 7.3 per cent.
The Bangalore based IT major’s revenues were at Rs 13,342 crore as it grew 4.5 per cent on a quarter on quarter basis and 2.9 per cent on a year-on-year basis.
However, the company has made no changes to its yearly revenues guidance of 7-9 per cent; still below the Nasscom outlook of 13-15 per cent growth for the sector.
Newly appointed CEO and MD Vishal Sikka said that the company will reshape the way they do business. “Digital transformation is reshaping the business of every one of our clients. We see this as a great opportunity to help them renew the core of their business as well as to expand into new frontiers and are seeing early positive results,” Sikka said announcing the quarterly results.
Sikka said that their target was to grow 15-18 per cent within the next couple of years.
“We, at Infosys, see a tremendous opportunity in this world that we are emerging into. We have to ourselves deal with this duality of on one hand, renewing our existing services and on the other hand, complementing that with new kind of services,” Sikka said.
Attrition rates of the company continued to remain a concern despite a small reduction. “On LTM basis, it is 20.1 per cent but when you look at it on a month-on-month basis, it has actually come down and stemmed down in the right direction. We are very confident that in next two quarters, we will get it back to where we want it to be,” UB Pravin Rao, Chief Operating Officer of the company said.
Sikka added that they would like attrition to be in the range of 12-14 per cent. The company announced a higher Rs 30 per share dividend after their better than expected results, besides bonus shares.