Infosys beats market expectations

Beating expectations of the market, India’s second largest IT exporter Infosys reported robust numbers for the second quarter ended September 30, 2015.

Fuelled by strong client spending and large deal wins, the company clocked a net profit of Rs.3,398 crore, registering a growth of 9.8 per cent when compared with the same period a year-ago.

The total revenue for the July-September period stood at Rs.15, 635 crore, registering a growth of 17.2 per cent against same period last year. On a quarterly basis, the net profit of Infosys grew 12.1 per cent and revenue grew 8.9 per cent respectively.

In dollar terms, the revenue stood at $2,392 million for the September quarter, reporting a y-o-y growth of 8.7 per cent and a sequential growth of 6 per cent. Net profit in dollar terms stood at $519 million, sequentially up 9.1 per cent and annually up by 1.6 per cent.

Commenting on the company’s performance Vishal Sikka, CEO and MD, said: “The second quarter revenue performance was the best in the last 16 quarters. We are very happy about that. All aspects among segments and services did well for us.”

Despite witnessing a strong Q2, Infosys has lowered its revenue guidance for the full year to 6.4-8.4 per cent from 7.2-9.2 per cent in dollar terms. However, in constant currency terms, it has maintained the guidance at 10-12 per cent.

The board of directors declared an interim dividend of Rs.10 per share

During the quarter, Infosys signed five large deals with a TCV (total contract value) of $983 million and added 82 new clients taking the total number of active clients to about 1,000. It also added 8,453 people taking its total headcount to 1.88 lakh as of September 30, 2015. The attrition rate for the said period was 14.1 per cent against 21.1 per cent same period last year. “We are comfortable with the current attrition rate and various measures taken by us in controlling the people leaving the company is gaining results,” said U.B. Pravin Rao, COO, Infosys.

On a geographical basis, North America grew by 6.1 per cent sequentially, Europe grew by 8.3 sequentially, while India and rest of the world grew sequentially by 9.4 per cent and 0.8 per cent respectively.

Infosys Technologies Limited