Infosys retains revenue guidance for FY18 despite 3.3pc dip in Q1 profit

|July 14, 2017 0

BANGALORE, INDIA: After TCS, Infosys also reported a a 3.3 percent sequential decline in the net profit to Rs 3,483 crore in Q1. This beats the street expectation anyway, which estimated the net profit at Rs 3,439 crore.

Revenue declined 0.2 percent to Rs 17,078 crore, but it retained the FY 18 revenue guidance nevertheless at 6.5-8.5 percent in constant currency. The dollar revenue growth guidance is raised by 1 percentage point to 7.1-9.1 percent from 6.1-8.1 percent earlier, although rupee revenue guidance is kept low at 3-5 percent.


“Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts– revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results,” said Dr. Vishal Sikka, CEO.

“We had broad-based growth across geographical and industry segments. Our initiatives on operational discipline led to record levels of utilization and better realization during the quarter,” said U B Pravin Rao, COO.

Revenue contributions from new services(Cloud Ecosystem, Big Data and Analytics, API and Micro Services, Data and Mainframe Modernization, Cyber Security and IoT Engineering Services) and software(Edge, NIA, Panaya, Skava) stood at 8.3 percent and 1.6 percent respectively. In April, the company has launched its next-generation Artificial Intelligence(AI) Platform Nia which has now become central to all its digital transformation conversations with clients.

The company reported 59 new client additions altogether in the June quarter, including 6 clients in $25 million category, 1 client in $10 million category and 8 clients in $1 million band.

Geography wise, North America which contributed 61.1 percent to total revenue, grew by 1.3 percent sequentially in constant currency; while Europe, contributed 22.4 percent of revenue, grew 3.1 percent; India business which accounted for 3.6 percent of revenue, grew 11.2 percent; while the rest of the world, which contributed 12.9 percent to total revenue, grew 6.9 percent.

Industry wise, BFSI segment, which contributed 33.3 to total business, grew 2 percent sequentially in constant currency terms; Manufacturing & Hi-tech business, which accounted for 22.2 of total revenue, grew 1.5 percent; Retail & life sciences, which contributed 22.7 to revenue, grew 2.6 percent, Utilities, Communications & Services which contributed 21.8 percent of revenue, grew 4.9 percent.

Attrition rate on consolidated basis increased 21 percent in June 2017 from 17.1 percent in March 2017, and saw a rise to 16.9 percent from 13.5 percent in March 2017 on standalone basis. Infosys during the quarter reduced its headcount by 1,811 to 1,98,553 employees in Q1, although S/W professionals in June quarter headcount was increased by 217 to to 1,86,882 in Q1.

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