India’s second largest IT service provider Infosys today beat market expectations with consolidated profit for third quarter ending December 2016 rising 1.94 percent sequentially to Rs 3,465 crore and revenue growing 1.7 percent to Rs 15,902 crore.
The better than expected numbers comes in a quarter that is traditionally considered to be weakest quarter of year for IT service providers mainly due to holiday season in the US and also the loss of working days during the quarter owing to Chennai floods that affected all major IT service providers in the country.
Dollar revenue for the quarter increased 0.6 percent to $2,407 million from $2,392 million on sequential basis and 1.1 percent in constant currency.
The third quarter year on year revenue grew 8.5 percent in US dollar terms (USD) and 12.5 percent in constant currency.
The company issued a higher revenue guidance 12.8-13.2 per cent in constant currency and 8.9-9.3 per cent in USD terms on Dec 31, 2015 exchange rates.
“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,” said Vishal Sikka, CEO and MD.
“Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds, and will strengthen the execution of our strategy towards consistent profitable growth.”
U B Pravin Rao, President & COO said, “The healthy volume growth (3.1 per cent growth quarter to quarter) this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter.” said. “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.”
M D Ranganath, who was appointed as the chief financial officer last quarter said, “We have been able to navigate the quarter, better than our earlier expectations”, We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters.”