Infy cuts $ revenue forecast, queers the earnings pitch

Consolidated net profit in July-September rose to Rs 3,398 crore compared with Rs 3,096 crore in the year-ago period, the company said in a statement.

Infosys forecast Monday that revenues would increase 6.4% to 8.4% for its full year until March, in terms of dollars. Shares of Infosys plunged by 5.04 per cent to Rs 1,108.90, which was key contributor to a 1% fall in the Sensex inspite of a 225-point rise in early trade.

On the sudden resignation of chief financial officer (CFO) Rajiv Bansal and its acceptance with immediate effect, chief executive Vishal Sikka said it was a personal decision and normal in any company.

In a declaration, Infosys CEO and MD Vishal Sikka stated, “We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximise their potential with technology…” M.D. Ranganath, now Infosys’ head of strategic operations, will replace him. Noting that the company was taking steps to become a complete services organisation, Sikka said results in any one quarter were transitory snapshots of a long journey.

“Our focus on operational efficiencies has resulted in increase in operating margins despite higher variable payouts”, outgoing Chief Financial Officer (CFO) Rajiv Bansal said on the occasion. BarclaysView OverweightTarget: Rs 1,320 (Unchanged) Barclays believe with lower expectations built in to the guidance, Infosys is likely to achieve or exceed the higher end of its growth guidance in FY16 and deliver industry-leading growth in FY17. Improvement in client metrics (which measure overall customer satisfaction) and stable attrition rate also contributed to the overall quarterly performance.

Panaya: Baxters Food Group, a global food company headquartered in Fochabers Scotland, chose Infosys as a strategic partner to upgrade its Oracle e-Business suite for finance, supply chain and manufacturing applications by using the Panaya platform.

According to the release, the company added 82 clients during the quarter, and the total number of clients crossed the 1000-mark.

Companies in IT services such as Infosys, with clients that include Walmart Stores and Apple make the largest share of their monies servicing USA clients.

Revenue at $2.392 billion was up six percent quarter over quarter, well ahead of the expected four percent growth. Bansal will continue to be special adviser to CEO and a member of board till December 31, to ensure smooth transition. “There was no lowering, there was no raising”, the Infosys CEO told ET. It is an Indian multinational corporation that works in business consulting, information technology, software engineering and outsourcing services.

India’s second-largest software exporter aims to more than double its revenue to $20 billion by 2020, and is betting on new service offerings and technology to fuel this growth.