Infosys lowers guidance for FY18 as Q4 revenue dips; attrition was high in FY17

|April 13, 2017 0

BANGALORE, INDIA: Infosys today posted a profit of Rs 3,603 crore for the quarter ended March 31, 2017, with a QoQ decline of 2.8 per cent  against Rs 3,708 crore in previous quarter. The revenue also saw a decline of 0.9 per cent QoQ but increased 3.44 per cent YoY to Rs 17,120 crore.

FY17 revenue, however, grew 9.7 per cent to Rs 68,484 crore in INR terms and 8.3 per cent in constant currency terms.

Infosys has also kept the revenue growth guidance lower than the street estimates at 6.5-8.5 per cent in constant currency terms and 2.5-4.5 per cent in INR terms for FY18. The street was expecting a guidance of 7-9 per cent growth.

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Commenting on the performance, Dr. Vishal Sikka, CEO said, “Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance. At the same time, we continued to see many positive signs of our strategy execution; our software- led offerings continued to show strong momentum and client success, with continued adoption of Mana, our AI platform; Zero Distance marked its 2-year anniversary as a grassroots cultural movement for innovation with strong client resonance, and our employee engagement continued to drive down attrition, especially with top performers.”

But more people left the company in FY17 as compared to the year before, although Infosys’ attrition rate dropped marginally to 13.5 per cent at the end of the March, as against 14.9 per cent in the December quarter. The number of people who left the company in FY16 was 34,688, which increased to 37,915 in FY17. Consolidated attrition rate from the company was at 19.2 per cent for FY17 as against 18.7 per cent for FY16.

Geography-wise, the company reported 1.2 per cent QoQ rise in its US revenues, while it saw 1.6 per cent drop in Europe revenues, 6.9 per cent drop in India revenues, and 1.3 per cent QoQ drop in the revenues from the rest of the world, all in constant currency terms.

Industry wise, revenue from the Energy, Utilities, Communications & Services segment rose 2.8 per cent QoQ, BFSI sector rose 0.5 per cent QoQ, Manufacturing revenue remained flat, while retail, CPG and logistics saw a 3.1 per cent QoQ.

The company added 71 new clients in Q4, taking the total number of clients to 1,162. The company has added 1 new clients each in the 50 Million dollar + and 100 Million dollar + category.

Ravi Venkatesan, the independent director, who has been on the Board of Infosys since April, 2011 has been appointed as Co- Chairman of the Board.