Infosys’ scrip rose by 3 per cent after the company’s third quarter earnings beat street estimates.
Beating all estimates and projections, Infosys reported a net profit of Rs.2,875 crore for the third quarter ended December 31, 2013, against Rs.2,369 crore in the year-ago period, up 21.4 per cent. Its revenue was Rs.13,026 crore for the same period.
Earnings per share (EPS) were Rs.50.32 for the previous quarter which focussed on cloud and big data as new growth areas which continued to yield results. The company’s revenue outlook for the current financial year ending March 31, 2014 is projected to grow at 24.4 per cent to 24.9 per cent.
This was disclosed by S. D. Shibulal, CEO and Managing Director, while announcing the results here on Friday. Mr. Shibulal said the year ahead looked exciting for the IT service industry. “We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives,” he added. “We continue to differentiate ourselves to seize growth opportunities and the recent changes in organisational structures will enable us to strengthen client relationships and increase market share,” according to Mr. Shibhulal.
Infosys and its subsidiaries added 54 clients during the quarter, including 26 new million-dollar clients. There was a gross addition of 6,682 employees for the quarter by the company and its subsidiaries. At the end of the third quarter, there were 1,58,404 employees.
The company held liquid assets, including cash and cash equivalents, certificates of deposits and government bonds, worth Rs. 27,440 crore at the end of the last quarter as against Rs.26,907 crore as on September 30, 2013. Geographically, North America contributed 60 per cent of the company’s revenue during the quarter under review. Europe accounted for 24.9 per cent, India 2.6 per cent and rest of the world 12.5 per cent.
Rajiv Bansal, Chief Financial Officer, said the quarter saw early but promising results of the initiatives to increase efficiency in the operations. This would remain a focus area so as to make investments necessary to secure growth, he added.
Mr. Shibhulal also announced a re-alignment in the business portfolio. This was to further enhance the company’s deepening client relationship, to increase market share and create product differentiation.
He also announced the appointment of two new Presidents, B. G. Srinivas, who will focus on global markets, and U. B. Praveen Rao, who will focus on global deliveries and service innovation. Consequently, the Executive Council will be dissolved with effect from the new financial year.
The realignment was to create industry-leading growth, said Mr. Shibhulal.