Infosys beats market expectation with Q4 numbers

BANGALORE, INDIA: Infosys beats market's expectation for the four quarters in a row today, with 3.8% QoQ growth in its Q4 net profit at 3,597 crore.

The Q4 revenue of the second large Indian IT company sees 4.1% QoQ growth to reach Rs 16,550 crore against estimates of Rs 16,460 crore.

The company's consolidated profit jumps by 9.4% YoY to Rs 13,491 crore, while revenue sees a jump of 17.1% YoY to Rs 62,441 crore.

Infosys' automation and innovation strategy has started paying off, according to the CEO, Dr. Vishal Sikka.

“We started the year just two quarters into a strategy to completely reimagine 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 we are seeing in strategic areas where we never participated before. I am proud of what our teams have achieved this quarter and in the year," says he.

The company added 89 clients in Q4, with 1 new client in 100 million dollar + bracket. It completed more than 220 engagements leveraging IIP (Infosys Information Platform) and saw more than 125 engagements in IAP (Infosys Automation Platform) across segments.

Business IT services contributes the major chunk of the revenue in Q4 at 61.6%- a slight increase from 61.2% in Q3. Consulting, Package implementation revenue in Q4 was 33.2%- a slight drop from 33.8% in Q3. Products, platform and solution business stood at 5.2%- again a slight increase from 5.0% in Q3.

Industry wise the largest contribution comes from BFSI(32.8%), followed by Retail & Life Sciences(at 24.5%), Manufacturing & Hi-Tech(22.7%), Energy, Utilities, Communications & Services(20.0%).

Geography wise, 61.9% of its revenue generated in North America, 23.4% in Europe, 3.0% India, while rest of the world contributes 11.7%.

The company keeps FY 17 revenue guidance at 11.5%-13.5%.