MYSORE: The country’s second-largest software services firm Infosys today posted a 21.4 per cent rise in net profit and raised its revenue growth outlook for this financial year as improving US and European economies revive demand for outsourcing services.
The company’s net profit stood at Rs 2,875 crore in the third quarter ended December 31 as against Rs 2,369 crore a year earlier. Revenue rose 25 per cent to Rs 13,026 crore from Rs 10,424 crore, Infosys said in a statement.
“Our Q3 was a decent quarter. We grew by 1.7 per cent in Q3. Our revenue was USD 2.1 billion. The volumes went up by 0.7 percent. The onsite came down by 3.4 per cent and the offshore went up by 2.6 per cent, very much in line with some of the initiatives which we have undertaken over the last two quarters,” Infosys CEO and MD S D Shibulal said.
He added that the quarter saw good client additions with 54 new customers, including a new USD 50 million client.
Infosys raised its revenue growth forecast to 24.4-24.9 per cent for the financial year ending March 31, from 21-22 per cent estimated earlier.
“We are seeing some confidence coming back to our clients but at the same time we expect the budget to be stable from last year to this year. Our clients are very focused on cost optimization even today,” Shibulal said.
Shares of the company rose 2.73 per cent to Rs 3545.35 on the BSE, while the benchmark Sensex climbed 0.76 per cent.
“The results of Infosys were a mixed bag. While revenue matched expectations, the margins were better than expectations,” said Dipen Shah, Head – Private Client Group Research at Kotak Securities.
Shibulal said the deal pipeline looked decent.
“We continue to see momentum in large deal wins. This is driven by client focus on efficiency and cost optimization.
The other area we see activity is digital transformation,” he said.
The US and Europe account for more than 80 per cent of the revenue of Indian IT exporters. North America contributed 60 per cent of revenue for Infosys in the third quarter and Europe 24.9 per cent.
Competitors Tata Consultancy Services and HCL Technologies have remained bullish on the opportunities presented by the revival in the market after the 2008 economic crisis. Infosys, on the other hand, has maintained a cautious outlook.
Talking about the exodus of top management personnel from the firm, Infosys Executive Chairman N R Narayana Murthy said, “Let me make a cryptic comment — it is good for them and good for the company and we wish them the best as they have added value to the organization.”
He said the company has set up a leadership institute and also has a large number of enthusiastic and energetic people.
Infosys co-founder Murthy was brought back to head the IT major in June, following quarters of laggard performance. -PTI
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