Infosys III Quarter net up 7%; total income rises 8.3%

Infosys Ltd, the nation’s second-biggest software exporter, has reported a 7% increase in the III Quarter net profit. Beating forecasts, the software exporter giant buoyed by an influx of new clientele registered a quarterly net profit of 37.08 billion rupees ($544.03 million). The figures were 34.65 billion for the corresponding period in the previous year. Revenues also rose to 172.73 billion rupees showing a growth of 8.6%. Analysts had predicted a profit of 35.44 billion rupees and revenue of 173.01 billion rupees as per Thomson data.

Total income rose to 8.3% at Rs. 18,093 crores. The second largest IT Company of India also raised its yearly growth forecast to 12.8-13.2% as compared to an earlier figure of 10-12%. The company fortunes have been buoyed by high margin automation and other services. Infosys also revised the revenue guidance in constant currency for the Financial Year 2016-17 at 8.4-8.8 % against 8-9% estimated earlier.

CEO Vishal Sikka had on a cautionary note asked employees to be ready for tough times ahead. He also emphasised the need for automation and cautioned against   “apathetic” attitude towards better value addition. In his New Year message, Sikka asked the employees to achieve all that they set out to do, and Infosys will continue to be the force which will propel the world towards purposeful evolution.

Sikka is at the helm of affairs as the CEO and MD of Infosys since August 2014. His stint was extended by two more years in February 2016 and now will remain at the position till March 2021. Sikka has been credited for getting the company from stagnation and getting it back into reckoning as a leader in the industry.

Infosys also appointed Ravikumar S as the Deputy COO and will be reporting to COO UB Pravin Rao. He held the post of Head of Delivery earlier. Infosys showing will greatly hearten its investors. Earlier Infosys was forced to cut its revenue forecast twice this year. It has been the same story across the IT industry its rival Cognizant slashing its outlook three times.

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