Infosys logs 3.5% Q4 net rise, sub-industry mean revenue guidance

IT services major Infosys on Friday reported 3.5 per cent growth in consolidated net profit to Rs 3,097 crore for the quarter ended March 31. It had posted net profit of Rs 2,992 crore in the January -March quarter of the 2013-14 fiscal, Infosys said in a BSE filing. Revenue of the country’s second largest IT services firm rose by 4.2 per cent to Rs 13,411 crore in fourth of the last fiscal compared to Rs 12,875 crore in the same quarter of 2013-14, it added.

On a sequential basis, Infosys’ net profit fell 4.7 per cent from Rs 3,250 crore in October-December quarter, while revenue declined by 2.8 per cent from Rs 13,796 crore during the same period. 

Reacting to the results, the company scrip fell 4.76 per cent to Rs 2,021.50 apiece on the BSE.

Infosys Managing Director and CEO Vishal Sikka said: “We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning.”

In dollars, Infosys net profit grew 2.3 per cent to $498 million in the fourth quarter of 2014-15 from $487 million in the year-ago period; revenues rose 3.2 per cent to $2.159 billion from $2.092 billion a year ago. Quarter-on-quarter, net profit fell 4.6 per cent from $522 million in December quarter, whereas revenue declined 2.6 per cent from $2.218 billion during the same period.

Infosys said it expects revenue for 2015-16 fiscal to grow in the range of 10-12 per cent, which is below Nasscom’s estimate of 12-14 per cent.  Infosys announced that it will acquire digital commerce player Kallidus Inc (d.b.a Skava) and its affiliate, for $120 million (about Rs 763 crore), which includes a deferred component and retention bonus.

The software services exporter is also making an early stage investment of $2 million in Airviz (around Rs 13 crore), to acquire a minority share. That apart, it said the Board of Directors has “approved the transfer of the business of Finacle and EdgeServices to the company’s subsidiary — EdgeVerve Systems Ltd”.

Cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were Rs 32,585 crore as on March 31, 2015.