Beating the street expectations India’s second largest IT exporter Infosys reported a 16.2 per cent increase in net profit for the fourth quarter ended March 31, 2016. The Bengaluru-based company’s net profit for the January-March quarter stood at Rs 3,597 crore. On a quarterly basis the profit witnessed a growth of 3.8 per cent.
The revenues of the company for the period matched the analyst expectation and stood at Rs 16,550 crore registering a growth of 23.4 per cent when compared to the same period last year. The operating profit was Rs 4,220 crore an increase of 22.4 per cent when compared to the same period last year.
The total revenues of the Bengaluru-based company for the full fiscal ended March 31, 2016 stood at Rs 62,441 crore registering a Year-on-Year (YoY) growth of 17.1 per cent. The net profit registered a YoY growth of 9.4 per cent and stood at Rs 13,491 crore, while operating profit was Rs 15,620 for the full year.
“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,” said Vishal Sikka, CEO and MD, Infosys.
In dollar terms the net profit for the fourth quarter of the fiscal FY16, was $533 million registering a YoY growth of 7 per cent and a sequential growth of 1.7 per cent. The revenues stood at $ 2,446 million for the quarter ended March 31, 2016 registering a sequential growth 1.9 per cent sequential growth in constant currency terms. For the full year dollar term revenues were $ 9,501 million and net profit was $ 2,052 million for the year ended March 31, 2016.
The Board of Directors recommended a final dividend of Rs 14.25 per share for fiscal 2016.
“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. We continue to reimagine our internal processes to increase organizational agility.” said U B Pravin Rao, COO. said U B Pravin Rao, President & COO, Infosys.
Going forward, for the next fiscal Infosys expects its revenue to perform better than the Nasscom guidance. The IT industry body Nasscom has predicted the IT exports to grow at slower pace of 10-12 per cent in FY17.
Infosys expects its revenue to grow between 11.5-13.5 per cent in constant currency terms for the year ending March 31, 2017. The revenue outlook for FY17 in rupee terms is expected to grow between 12.7-14.7 per cent.
Infosys also announced the appointment of Mr. Mohit Joshi, Mr. Ravi Kumar S and Mr. Sandeep Dadlani as the presidents of the company effective immediately.
“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.” said M.D. Ranganath, Chief Financial Officer, Infosys.
