Infosys posts 1.6% rise in fourth-quarter net profit | business | Hindustan Times
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Infosys posts 1.6% rise in fourth-quarter net profit

India’s second-largest IT services company Infosys Ltd reported on Friday a better-than-expected 1.6% rise in fourth-quarter net profit, helped by new client wins.

business Updated: Apr 17, 2016 12:38 IST
Kalyan Subramani
Kalyan Subramani
Hindustan Times
Infosys,Infosys results,Vishal Sikka
CEO and MD of Infosys Vishal Sikka. (Agency Photo)

India’s second largest information technology company met market expectation and reported a revenue (in dollar terms) growth of 1.6% for the quarter ended March 31, 2016.

The company reported a 9.1% growth in revenue for the full fiscal 2015-116. Revenue for the last quarter and full fiscal in constant currency terms grew by 1.9% and 13.3% respectively.

Revenues and operating profit for the quarter were $ 2,446 million and $ 625 million respectively while net profit grew by 1.7% to $533 million. Net profit was $ 2,052 million for the year ended March 31, 2016 recording a growth of 1.9%, year on year.

For the fiscal 2016-17, the company has provided a revenue growth guidance at 11.5-13.5% in constant currency terms and 11.8-13.8% in US dollar terms.

Commenting on the first full year results since his appointment as CEO, Vishal Sikka said, “We started the year just two quarters into a strategy to completely re-imagine the notion of services and to transform Infosys. Over the course of this year, we saw this strategy, of bringing automation and innovation to our clients, on a foundation of learning and education, start to show results in the organic growth of our client relationships, in our win rates in large deals, and in the types of projects we are seeing in strategic areas where we never participated before.”

The Board of Directors recommended a final dividend of Rs 14.25 per share for fiscal 2016.

The company’s chief operating officer U B Pravin Rao said, “Employee attrition reduced further in Q4, and is reflective of increased engagement with our people all through the year, and our steps to make Infosys an exciting place for the world’s best talent.”

The company’s chief financial officer M D Ranganath said, “Our growth trajectory improved in FY 16 and we navigated the external business environment well. We will continue to focus on leveraging operational efficiency levers for consistent profitable growth. During the quarter, cash generation was strong. We managed a volatile currency environment effectively.”

For Sikka, the first non-founder CEO of Infosys this is the first full year results at the helm of the company. nfosys under Sikka has beaten the growth expectations of the market for four consecutive quarters. While announcing the third quarter results ending December 2015, Sikka had promised that his company was on track to regain its pole position as market leader in terms of growth, beating its main rival Tata Consultancy Services (TCS).

That last stock market trading on Wednesday saw Infosys stock drop by 0.52% to Rs 1,176. The markets remain closed on Thursday and Friday.

India’s largest IT services exporter TCS will be announcing its 2015-16 results on April 18, while Wipro will do so on April 20. The other two major IT services provider HCL Tech and Cognizant that do not follow the April-March financial reporting. Cognizant that follows the calendar year for its financial results will be reporting its first quarter results for 2016 on May 6, while HCL Tech will be reporting its third quarter results on April 23.