Infosys net up 38% in Q3, lowers outlook


Profits for the three months ended December 31 rose to Rs 5,129 crore from Rs 3,708 crore for the year-earlier period, Infosys, which counts JP Morgan Chase, Bank of America, Citigroup, Vodafone, BP Plc and Johnson Controls among its clients, said in a press release on Friday. The company had posted Rs 3,708 crore profit in year ago period.

Under the International Financial Reporting Standard (IFRS), the company said the annual revenue growth in dollar terms would be 6.5-7.5 per cent with the exchange rate of Rs 63.88 per dollar and same (5.5-6.5 per cent) in CC.

Investors and market watchers are expecting to hear from Infosys' new CEO Parekh on his strategy to spur growth for the company that is trying to put behind the nearly year-long public standoff between its high-profile promoters and the past leadership.

The company bought back shares worth Rs 13,000 crores.

In rupee terms, there was a growth of 1.3%.

Infosys reported a rise in net profit of 38.3 percent from a year earlier to 51.29 billion rupees ($806 million) for the quarter to December 31, way above analysts' estimates. As a result, the current tax expenses reduced to Rs 144 crore from Rs 1,471 crore, sequentially. The company's net profit also rose 38.3% in the third quarter of 2017-'18 compared to that in the third quarter of 2016-'17. "We had 8 per cent year-on-year growth and 24.3 per cent operating margin with $593 million of free cash flow".

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The company also earned $31 million (Rs 198 crore) from interest on income tax refund for the quarter. "With this renewed energy and attention, we have an opportunity to build a stronger Infosys", he said.

Parekh's appointment came after the abrupt resignation of Vishal Sikka, who had quit in August following public spat with co-founders led by N R Narayana Murthy.

"We are progressing towards stability and are well positioned to serve our clients in the new areas of demand" he added.

Adding to this, the company CFO Ranganath D Mavinakere opined that the growth reported is resilient on many dimensions, with improved operating margins as a result of broad-based improvement in operational efficiency.

He said that building on strategy initiated by Infosys Chairman Nandan Nilekani, the company is conducting a review structured around four dimensions, namely, new market opportunities, client relationships, people, and service offering portfolio. "We successfully executed the share buyback of Rs13,000 crore in line with our capital allocation policy".