Infosys Q4 net up 16% to Rs 3,597 crore
Infosys Ltd, India’s second- largest IT services firm, on Friday reported better-than-expected 16 per cent rise in the fourth-quarter net profit and forecast strong revenue growth for the current fiscal on new client additions.
Consolidated net profit at INR 3,597 crore in the January-March period of last fiscal was 16.2 per cent higher than INR 3,097 crore net earning in the same period of 2014-15, the company said in a statement.
Turnover rose 23.4 per cent to INR 16,550 crore in the fourth quarter of 2015-16. On a sequential basis, Infosys’ net profit rose 3.8 per cent from INR 3,465 crore in the October-December quarter while revenue was up 4.1 per cent from INR 15,902 crore during the same period.
Infosys said sales will rise between 11.8 per cent and 13.8 per cent in $terms in the 2016-17 fiscal year that began on April 1. Revenue will grow between 11.5 and 13.5 per cent in constant currency terms, indicating a faster growth rate than the industry average as the company shifts to high-margin digital services business.
Industry body Nasscom had in February forecast a 10-12 per cent growth for IT and software services exports in 2016-17. Under Vishal Sikka, the company’s focus has been artificial intelligence, adding new contracts and keeping hold of staff to boost sales. This, together with acquisitions, has helped turnaround Infosys that was losing share to rivals like Tata Consultancy Services (TCS) and Cognizant.
Infosys, whose board in February extended Sikka’s term as Chief Executive by another two years to 2021, added 89 clients in the last quarter, including 5 large clients who pay more than $50 million annually.
Sikka is eyeing revenue of $20 billion by 2020, more than double of $9.5 billion sale in 2015-16. “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,” he said.