Infosys, India’s second largest IT services exporter reported a 21.56% rise in consolidated net profit for the first quarter ending June 30, 2014. The company posted a net profit of Rs 2,886 crore as compared to Rs 2,374 crore in the corresponding period a year ago.
In effect Narayana Murthy has driven Infosys onto growth path as new CEO Vishal Sikka takes over at the helm.
The revenues of Infosys for the first quarter ending June 30, 2014 rose by 13.3% The company reported a revenue of Rs 12,770 crore as compared to Rs 11,267 crore in the corresponding period a year ago. Sequentially, Infosys’ posted a 3.5% decline in net profit, while revenues declined 0.81%.
The company has retained its dollar revenue guidance for the current fiscal at 7-9%.
“We improved operational performance as a result of our cost optimization initiatives and a focus on increasing productivity and utilization. This partially offset the impact of compensation increases for our employees this quarter.” said Rajiv Bansal, Chief Financial Officer. “It will help us invest in areas that will accelerate growth.”
The company added 61 clients during the quarter and its gross addition of employees stood at 11,506 during the quarter.
“We saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes.” said U B Pravin Rao, Chief Operating Officer. “Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.”
“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization.” said S D Shibulal, CEO and Managing Director, Infosys. “As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best.”
Infosys Q1 profit up 21.6 pct, retains annual forecast
(Reuters) Infosys Ltd, India’s second-largest software services exporter, beat estimates with a 21.6 percent rise in quarterly net profit and retained sales growth outlook for this year on surging demand for outsourcing services.
Infosys, which named Vishal Sikka, a former senior executive at German software company SAP AG, as CEO last month, has been reeling under a staff exodus and loss of market share to rivals.
The staff departures are a major worry for the company, which saw its annualised staff attrition rate touching a record high of 19.5 percent in the quarter ended June 30 from 18.7 percent in the previous quarter.
“Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent,” Chief Operating Officer U.B. Pravin Rao said in a statement to accompany the results on Friday.
Infosys, which added 61 customers in the quarter, maintained its revenue growth forecast for the year to March 2015 at 7-9 percent, as expected.
Consolidated net profit for the quarter ended June 30 rose to 28.86 billion rupees ($480.20 million) from 23.74 billion rupees in the same year-ago period, Bangalore-based Infosys said in a statement on Friday.
The profit was higher than the 26.72 billion rupee average of analyst estimates, according to Thomson Reuters data.
Revenue in the quarter rose 13.3 percent to 127.70 billion rupees.
Infosys customers include BT Group Plc, Bank of America and Volkswagen AG.
($1 = 60.1000 Indian Rupees)
fe Bureau | The Financial Express