Beating market expectations, Infosys, on Friday, witnessed 13 per cent growth in its net profit at Rs.3,250 crore for the quarter ended December 31, 2014, when compared to the same period last year.
The revenue of the city-based company stood at Rs.13,796 crore, registering a growth of around 5.9 per cent as against the same period last year.
On a quarterly basis, the net profit was up by 5 per cent, while the revenue grew 3.4 per cent. EPS (earnings per share) for the said quarter was Rs.28.44, registering a year-on-year growth of 13 per cent. Commenting on the company’s performance, CEO and Managing Director Vishal Sikka said: “We are excited by several breakthrough results in the third quarter. Our ‘renew and new’ strategy, is being received well by our clients and our ecosystem, and we are already seeing its early adoption.”
During the quarter, Infosys and its subsidiaries made a gross addition of 59 new clients. The company also made a gross addition of 13, 154 employees during the quarter, taking the total headcount to around 1.70 lakh employees as on December 31, 2014.Going forward, the company retained its annual guidance of 7-9 per cent for the fiscal, below Nasscom guidance of around 13-15 per cent for the industry.
“Our sequential revenue growth in the third quarter was adversely impacted to the extent of 1.8 per cent due to dollar appreciation against other major currencies,” said Chief Financial Officer Rajiv Bansal said. The company’s volume grew by 4.2 per cent quarter-on-quarter, which is the best in the last three years, while operating margins stood at 26.7 per cent, an increase of 60 basis points quarter-on-quarter.
“During the quarter, we saw broad-based volume growth, increased utilisation and strong client additions,” said Chief Operating Officer U. B. Pravin Rao. “Infosys reported revenues, which were in line with estimates. The margins beat our estimates, but were partly driven by reduction in doubtful debt provisioning. The highlight was the 4.2 per cent volume growth in a seasonally weak quarter and the consistent high addition of employees on a net basis,” said Dipen Shah, Head (Private) Client Group Research, Kotak Securities. Geographically, North America business grew 2.1 per cent sequentially and 2.3 per cent in constant currency, while Europe, which is still under pressure, declined by 2.1 per cent sequentially and 1.9 per cent in constant currency terms. The Indian market grew 14 per cent sequentially and 16.7 per cent in constant currency.
Shares of Infosys on the BSE closed at Rs.2,015, up 2.05 per cent.
Management change Infosys also said that Parvatheesam Kanchinadham, Chief Risk and Compliance officer and Company Secretary, will be leaving the company effective January 10. David Kennedy, General Counsel, will assume the role of Chief Compliance Officer and Manikantha A. G. S. will be the interim Company Secretary.
