Infosys reports a strong Q3 with 13pc profit rise

BANGALORE, INDIA: IT major Infosys has reported better-than-expected third quarter earnings with 13 per cent YoY growth in the Q3 net profit. The company has posted a net profit of Rs. 3,250 crore for the Q3 ended in December 31, 2014, far ahead the of the analysts' estimates of Rs. 3,151 crore.

The company clocked a net profit of Rs. 2,875 crore in the same period last year.

The revenue in Q3 rose to 5.9 per cent YoY to Rs. 13,796 crore.

“We are excited by several breakthrough results in Q3. Our “renew and new” strategy, is being received well by our clients and our ecosystem and we are already seeing its early adoption,” said Dr. Vishal Sikka, CEO and MD. “Based on our strong performance, we are intensifying our efforts to deepen employee engagement, client ecosystem and strengthen our foundation of education as we build a nextgeneration services company that innovates for consistent profitable growth.”

Infosys and its subsidiaries has added 59 clients during the quarter. The employee count rose to 169,638 employees( as on December 31, 2014), with 13,154 new people hired during the quarter at Infosys and its subsidiaries. “During the quarter, we saw broad-based volume growth, increased utilization and strong client additions,” said U. B. Pravin Rao, Chief Operating Officer. “We have made 100per cent variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters.”

Geographycally, North America grew by 2.1 per cent sequentially, while Europe declined by 2.1per cent sequentially. Rest of the world also declined by 2.3per cent sequentially. However, India India, which accounts for less than 2.5 per cent grew by 14per cent sequentially.

BFSI and Manufacturing, which contributes to Infosys' revenue heavily, grew by 1.8per cent and 1.4per cent sequentially, while Retail, CPG, Logistics and Life Sciences grew by 1.1per cent sequentially. Energy, Utilities, Communications services however, declined by 1.9per cent sequentially.

Infosys kept the revenue guidance at 7-9 per cent for the fiscal year 2015.

The company has expanded its innovation fund from the current $ 100 million to $ 500 million to support the creation of a global eco-system of strategic partners. The capital will be used to invest into young companies world-wide innovating in areas such as AI, Automation, Internet of Things, Collaboration and Design.