Infosys posts 6.6% rise in profit; stock soars 4.28%https://indianexpress.com/article/business/business-others/infosys-posts-6-6-rise-in-profit-stock-soars-4-28/

Infosys posts 6.6% rise in profit; stock soars 4.28%

Based on the strong performance, the firm upped its revenue projection for the fiscal to the 12.8-13.2 per cent range from the earlier 10-12 per cent.

Infosys Chief Executive Officer Vishal Sikka (left), with CFO Ranganath D Mavinakere in Bengaluru on Thursday. (Source: PTI)
Infosys Chief Executive Officer Vishal Sikka (left), with CFO Ranganath D Mavinakere in Bengaluru on Thursday. (Source: PTI)

IT major Infosys Ltd has posted 6.6 per cent rise in net profit to Rs 3,465 crore for the quarter ended December 2015 as against Rs 3,250 crore in the same period last year on the back of a healthy volume growth. Infosys shares surged 4.28 per cent on the bourses after the company posted better results and upgraded revenue projection for the fiscal.

Revenues were beyond market expectations for the third consecutive quarter registering a 15.3 per cent rise to Rs 15,902 crore as against Rs 13,796 crore last year. The net profit rose by 2 per cent and revenue by 1.7 per cent on a sequential basis from the September quarter. In dollar terms, the company recorded a third quarter revenue of $2,407 million, a sequential growth of 0.6 per cent and an annual growth of 8.9 per cent.

Based on the strong performance, the firm upped its revenue projection for the fiscal to the 12.8-13.2 per cent range from the earlier 10-12 per cent.

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Infosys CEO and MD Vishal Sikka stated that he was “very pleased’’ with the results and the company was on the path to being a bellwether Indian IT firm again, a position it has dropped from in the last couple of years even as rivals TCS, Cognizant and HCL have surged. Sikka who took over as CEO over a year ago attributed the growth spurt to a new level of confidence within the company and to efforts at getting employees to think of innovation. The new confidence in the company is evident in the arrest of attrition, he said.

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Infosys is “confident of going into industry level growth in 2017,’’ Sikka said. “We are seeing Infoscions becoming innovators, bringing innovation and client value to each individual project. This confidence can only come from a culture of learning and empowerment, and this is the kind of company we are endeavoring to create,” Sikka said.

“Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds, and will strengthen the execution of our strategy towards consistent profitable growth,” Sikka said. The work done by 1,100 people in the firm has been automated as part of innovation efforts, the CEO added.

The third quarter is considered as ‘sticky’ by IT firms on account of holidays, softer pricing etc. Sikka said it was encouraging to see that Infosys had registered strong volume growth despite traditional factors. “Our continued focus on employee engagement is paying dividends resulting in lower attrition. We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity,” COO Pravin Rao said.

“We have been able to navigate better than our earlier expectations. We will continue to focus on enhancing operational efficiency through multiple levers,’’ said Ranganath D Mavinakere, the company’s new CFO who took charge at the start of the third quarter. COO Pravin Rao said Infosys is looking at a deal pipeline of $3 billion going into the new fiscal.