Infotech bluechip Infosys on Friday posted a 3.50 per cent growth in net profit to Rs 3,097 crore for the quarter ended March 2015 from Rs 2,992 crore in same period of last year even as “pricing continued to be under pressure” and services growth turned out to the lower than expectations.
Though the company announced a one-for-one bonus issue and a higher dividend to cheer up the markets, the fourth quarter earnings missed street expectations with Infosys shares plunging 6 per cent to Rs 1,996.25 on the BSE.
On a year-on-year (YoY) basis, revenue showed a growth of 4.16 per cent at Rs 13,411 crore. The company’s quarter-on-quarter (QoQ) revenues were down 2.8 per cent for the March quarter and the net profit fell 4.7 per cent as the currency volatility added to the company’s troubles.
The second bonus issue of 1:1 by the firm in the last six months — last bonus issue was in December 2014 — surprised market analysts who said this could be to placate the shareholders. It also recommended a final dividend of Rs 29.50 per share (equivalent to Rs 14.75 per share after 1:1 bonus issue.
For the financial year ending March 2016, Infosys has projected a revenue growth in the range of 6.2-8.2 per cent in dollar terms and 10-12 per cent in constant currency. Revenues are expected to grow 8.4-10.4 per cent in rupee terms, the company said.
“We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning,” said CEO & MD Vishal Sikka.
Analysts were not enthused by the results. “Infosys results were below expectations. The company posted a dip of 2.6 per cent in USD revenues to $ 2,159 million against $ 2,236 million on the back of cross currency (CC),” said Sarabjit Kour Nangra, vice president, Angel Broking.