Infosys, India’s second largest IT services exporter, has sprung a pleasant surprise raising its revenue guidance for FY16 backed by strong volume growth of 3.1 per cent for the October-December quarter, perceived traditionally as a seasonally weak quarter. Infosys raised the revenue guidance for FY16 to 12.8-13.2 per cent from its earlier projection of 10-12 per cent in dollar terms on a constant currency basis.
Net profit stood at $524 million with a sequential growth of 0.9 per cent and a year on year rise of 0.4 per cent. Revenue growth for the October-December quarter was flat at 0.6 per cent on a sequential basis to touch $2.40 billion. On a year on year basis, it grew 8.5 per cent.
The operating profit margins of the company at the end of third quarter stood at 24.8 per cent, which was lower than the 25.5 per cent recorded in the previous quarter. The volume growth was healthy at 3.1 per cent and the company saw its attrition continuing to decline to close at 13.4 per cent at the end of the December quarter. Similarly in reported currency terms, revenue guidance has been raised to 8.9-9.3 per cent from the earlier levels of 6.4-8.4 per cent.
CEO Vishal Sikka attributed the quarter’s performance to the “creative confidence blossoming” within the company.
In rupee terms, the net profit of Infosys touched Rs 3,465 crore at the end of third quarter, registering a sequential growth of 2 per cent and an year-on-year rise of 6.6 per cent. The revenues at the end of the quarter grew by 1.7 per cent sequentially and YoY by 15.3 per cent to reach Rs 15,902 crore.
Sikka on the performance of Infosys said, “We are starting to see creative confidence blossoming within Infosys – David Kelley’s beautiful idea that innovation is not specific to one department but is an ability within all of us, waiting to unleash our full creative potential. 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.”
“The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilisation for the quarter.” said U B Pravin Rao, President & COO. “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.”