Infosys earnings beat estimates; revises guidance to 8.8%
Artificial intelligence led products key to future, says Sikka
Expect US President-Elect's policies to be friendly
Downward steady pricing pressure to stay
“Our ongoing focus on operational efficiencies has enabled us to keep YTD operating margins at similar levels for the same period last year. Our cash generation during the quarter was strong," said M.D. Ranganath, CFO.
Infosys on Friday reported a 7% rise in net profit of Rs 3708 crore in the quarter ended on December 31 on consolidated basis as against to Rs 3, 465 crore during the same period last year. The total income rises 8.3% to Rs 18,093 crore. Revenue rose 8.6% to Rs 17,273 crore in the three month period to December as against Rs 13,796 crore last year.
Infosys revised FY 2016-17 revenue guidance in constant currency at 8.4-8.8% against 8-9% estimated earlier.
In terms of US dollar, the Q3 revenues declined 1.4% sequentially and declined 0.3% in constant currency. Q3 year-on-year revenues grew 6.0% in USD terms; grew 7.3% in constant currency.
During the quarter, the company added 77 clients and also added 2 clients in the $75mn+ revenue category and current client count stands at 1,152. There was also a gross addition of 9,120 employees in Q3 of FY17 bringing up the total count to 1,99,763 employees as on December 31, 2016 as compared to 1,93,383 employees in December, 2015.
The company has appointed Ravikumar S as Deputy Chief Operating Officer reporting to Pravin Rao, Chief Operating Officer, with immediate effect.
"Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations," said Vishal Sikka, CEO and MD.
"Beyond the quarterly numbers, we continue to focus sharply on the execution of our strategy, as reflected in the growing embrace of AI-based automation, growth in our new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture. Our annual client survey results show highest customer satisfaction since we started the survey 12 years ago and increased adoption of Zero Distance and lowered attrition, especially amongst top performers – these are some of the key indicators of the growing creative confidence of Infoscions."