Beating the street expectations, India’s second largest software exporter Infosys on Friday said its net profit for the second quarter of FY17 ended September 30, 2016 stood at Rs. 3,606 crore, registering a growth of 6.1 per cent as against the same period last year. The total revenue of the company for the July-September period stood at Rs. 17,310 crore, registering a growth of 10.7 per cent.
However, as predicted by many analysts, the Bengaluru-based company lowered its revenue guidance for the full fiscal ending March 31, 2017.
Infosys, which gave a revenue guidance of 10.5-12 per cent in constant currency during the first quarter, has cut the same to about 8-9 per cent for the full year, which is lower than the industry estimates. IT industry body National Association of Software and Services Companies (Nasscom) had predicted Indian IT exports to grow 10-12 per cent in constant currency terms in FY17.
“Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance,” stated Vishal Sikka, Chief Executive Officer, Infosys, in a press release.
In dollar terms, the net profit was $539 million for the quarter ended September 30, 2016, while revenues were $2,587 million for the second quarter.
The July-September operating margins expanded 80 bps sequentially to 24.9 per cent and the volume grew 4 per cent during the quarter. The Q2 utilization, excluding trainees, stood at 82.5 per cent.
“We had well-rounded growth during the quarter in our market segments. Our delivery and support teams executed well on their plans for resource management during the quarter, leading to an uptick in utilization,” said U B Pravin Rao, Chief Operating Officer, Infosys.
During the quarter September 30, 2016, Infosys made a net addition of 2,779 people, taking the total headcount to 199,829 people.
“Our margins expanded during the quarter on the back of further improvement in operational efficiency,” said M.D. Ranganath, Chief Financial Officer, Infosys.
On a geographical basis, North America, which contributes 61 per cent of the company’s overall revenue, grew 2.6 per cent sequentially and Europe grew by 1.1 per cent sequentially. Infosys’s India business grew by 29.1 per cent sequentially.
Industry segment like financial service and insurance (FSI) grew by 5.2 per cent in constant currency, while manufacturing and hi-tech grew 2.1 per cent sequentially.
Infosys also declared an interim dividend of Rs. 11 per equity share.
In the early morning trade on Bombay Stock Exchange, the shares of the company was trading at Rs.1025.80 a piece down 2.50 per cent.
