Infosys beats street estimates
The Group has posted consolidated net profit of Rs. 33980.00 million for the quarter ended September 30, 2015 as compared to Rs. 30960.00 million for the quarter ended September 30, 2014.
Bansal also claimed that the company mitigated the impact of currency volatility by pro-actively hedging for the quarter. During the reporting quarter, the Bangaluru-based company’s revenues rose 17.2 per cent to Rs15,635 crore from the earlier Rs13,342 crore. On sequential basis, the company registered a rise of 12.1% in the net profit.
Currently, Infosys claims that since the start of the year, it has brought this innovation in about 65% or 5.600 of 8,500 master projects.
According to the release, the company added 82 clients during the quarter, and the total number of clients crossed the 1000-mark.
Infosys has kept its guidance on CC terms at 10-12 per cent. Nevertheless, its dollar guidance has been lowered to 6.4-8.4 per cent against 7.2-9.2 per cent earlier.
Last but not the least, as part of its philanthropic efforts, Infosys plans to invest INR270 crores toward its Corporate Social Responsibility program operated through the Infosys Foundation. The lower guidance reflects the choppy currency market movements and not a degradation in the company’s business fundamentals.
“Dollar strength during last quarter has actually impacted revenue guidance”, Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Co, said of Infosys’s forecast.
“Increase in revenue productivity was significant, volume growth was robust, client metrics and utilisation improved while attrition remained stable”, Rao asserted. Five large deals signed with TCV of $US 983 mn.
The second half is a traditionally weak period for Infosys and many of its rivals, including Tata Consultancy Services Ltd (TCS), on account of holidays in the third quarter; decision making on outsourcing contracts in the fourth quarter get pushed back as clients take time to come up with annual budgets for technology spending.
Infosys has managed a modest earnings performance in the second quarter of fiscal 2015. “Whether it is by using a better process, or delivery methodology, new software tooling”, said Sikka. We anticipate that decline in the rate of IT purchases following the 2008 recession, coupled with a highly competitive environment, might continue to trouble the Zacks Rank #3 (Hold) stock’s financials, going forward.