Software services major Infosys on Friday beat market expectations with a 21.4% year-on-year rise in consolidated net profit to Rs. 2,875 crore during the October-December quarter against Rs. 2,369 crore a year ago, led by improved demand for IT services across the US and Europe. The company has been trying to regain lost market share ever since co-founder NR Narayana Murthy came back from retirement last June to reboot the company’s sagging fortunes.
Analysts had expected Infosys to report a net profit of Rs. 2,700 crore during the quarter.
The company also raised its full-year revenue outlook, in dollar terms, to 11.5-12%, in line with expectations and a notch above its earlier projection of 9-10%.
“The year ahead looks exciting for the IT services industry,” said chief executive SD Shibulal.
Revenues jumped 25% to Rs. 13,026 crore during the quarter from Rs. 10,424 crore a year ago.
“While revenues matched expectations, margins were better than expectations,” said Dipen Shah, private client group head at Kotak Securities.
The number of $100 million-plus revenue clients rose to 15 in the quarter, from 12 a year earlier.
In the quarter, Infosys added 54 clients and a total 6,682 employees. However, the attrition rate of the company stood at 18.1% which was the highest in two years. As on December 31, 2013 the company had a little of over 1.58 lakh employees on its rolls.
Infosys’s stock rose 3% to close at Rs. 3,549 on the BSE on FriThe IT inheritors earn their spurs but some question marks remain day.