Infosys posts 0.2pc decline in Q3 revenue, cuts FY17 revenue guidance

BANGALORE, INDIA: Infosys has lowered its FY17 revenue guidance to 8.4%-8.8% from 8.0%-9.0%  in constant currency after it reported a revenue dip of 0.2 percent (decline of 0.3% in constant currency terms) to Rs 17,273 crore in the quarter ended in December 31, 2016. The dollar revenue also slipped 1.4 percent to USD 2,531 million.

However, the company has reported 2.8 percent sequential rise in its profit to Rs 3,708 crore.

It has added 77 clients in total in Q3 including 2 clients in the $ 75 million-plus revenue category, 9 clients in $10 million-plus category and 1 client in $25 million-plus revenue category.

“Our annual client survey results show highest customer satisfaction since we started the survey 12 years ago and increased adoption of Zero Distance and lowered attrition, especially amongst top performers – these are some of the key indicators of the growing creative confidence of Infoscions,” said Vishal Sikka, CEO and MD.

Attrition declined sequentially by 0.8 percent on standalone basis and 1.6 percent on consolidated basis.

“Beyond the quarterly numbers, we continue to focus sharply on the execution of our strategy, as reflected in the growing embrace of AI-based automation, growth in our new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture,” said he.

Geography-wise, North America business declined by 0.6 percent both sequentially and in constant currency, Europe revenue slipped by 2.5 percent sequentially, but grew by 1 percent in constant currency. India revenue declined by 1.0 percent sequentially and 0.1 percent in constant currency. Rest of the world declined by 3.2 percent sequentially; and 1.5 percent in constant currency

Domain-wise, BFSI declined by 0.8 percent sequentially but grew by 0.2 percent in constant currency. Manufacturing & Hi-Tech declined by 1.5 percent sequentially and 0.5 percent in constant currency. Retail & Life Sciences declined by 1.5 percent sequentially and 0.4 percent in constant currency. Energy, Utilities, Communications & Services declined by 2.1 percent sequentially and 0.8 percent in constant currency.

IT services revenue dipped from 62.8 percent to 62.0 percent in Q3, while  Consulting, Package Implementation & Others revenue grew from 32.1 percent to 32.4 percent in Q3.