Agreeing with Infosys, Nasscom President R Chandrasekhar on Friday said that conditions warrant a downward correction in guidance. Stating that a lot of short-term cues are negatively impacting IT industry, he said that the outlook for the industry doesn’t look negative over a long term. “Seeing short-term impact of Brexit, political uncertanities but there’s nothing much to be alarmed about,” he added. Slowdown in BFSI sector might impact earnings for a couple of more quarters, he further said.
Infosys reported 4.95 per cent rise in net profit at Rs 3,606 crore for the quarter ended September 30, 2016 against Rs 3,436 crore in the sequential quarter ended June 30, 2016. Consolidated total income of the IT major increased by 3 per cent on quarter-on-quarter basis to Rs 18,070 crore for the quarter under review. It had reported a total income of Rs 17535 in the previous quarter ended June 30, 2016. Consolidated operating profit of the company jumped by 6.50 per cent qoq to Rs 4,309 crore from Rs 4,047 crore in the sequential quarter ended June 30, 2016.
Stating that this is a structurally challenging time for the industry, Vishal Sikka, CEO, Infosys told ET Now that he is happy with the company’s performance and is focused on strong execution in Q2. The target of hitting $20 billion revenue by 2020 stays intact, he added. “Core IT services business is showing good progress and termination of the contract by RBS is one of the reasons behind guidance cut,” he further stated.