India’s second largest software exporter Infosys beat analyst expectations to report 2.9% growth in revenue at Rs 13,342 crore and 28.6% growth in net profit at Rs 3096 crore during the second quarter of the financial year against the corresponding quarter last year. Quarter on quarter, its revenue and net profit grew 4.5% and 7.3%.
In US dollar terms, the company posted year-on-year 6.5% growth in revenue at $ 2.2 billion and 33.4% growth in net profit at $ 511 million. Its revenue and profit in US dollar terms grew 3.9% and 6% sequentially.
The better-than-expected quarterly performance pushed Infosys stocks 5% up in the morning trade at Rs 3845. However, it remains to be seen whether the company which has been lagging industry average growth for quite some time would regain its pace in the near future.
Infosys board has approved a bonus issue of one equity share for every equity share held. Infosys bagged significant deals including a multi-year contract from Daimler, IT and BPO operation for a major US retailer and analytics solution for a UK supermarket chain in the second quarter.
Co-founder N.R.Narayana Murthy who stepped down as chairman of Infosys board today refused to accept the title of chairman emeritus. “He indicated that in line with the company’s high corporate governance standards and to avoid any perceived conflicts, it would not be appropriate for him to be the Chairman Emeritus of Infosys.
The Board accepted Mr. Murthy’s decision,” said a statement from the company. K.V.Kamath will take over as non-executive chairman of Infosys from October 11.
Infosys manage to improve its margins on better utilization of its workforce. However, attrition which has been a worry for the company for last many quarters, went up to 20.1% in second quarter from 19.5% in the first quarter. Infosys added 4,127 people to its workforce, taking its strength to 1,65,411 people.