Infosys Q3 results were a mixed bag, says analysts

The results of Infosys were a mixed bag. While revenues matched expectations, the margins were better than expectations, largely due to reduced S&M expenses and reduced headcount. The management is positive about the growth going ahead, despite it expecting budgets to remain flat. Attrition has increased to beyond 18 percent annualized and that remains a concern.

“We believe that, the improving demand scenario should bode well for Infosys, which also has several levers to protect and improve margins in FY 2015. We remain positive on the medium-to-long term prospects of Infosys,” said Dipen Shah, Head – Private Client Group Research, Kotak Securities.


Infosys said revenues from its largest vertical financial services and insurance sector grew 2 percent sequentially. Its customers in this segment, including banking, contributed 33.5 percent of the total sales during the December quarter.

During the October-December quarter, Infosys revenues from manufacturing clients rose 0.1 percent, while revenues from retail and life sciences sector grew 3.4 percent. Manufacturing contributes 22.8 percent of Infosys’s overall sales. Retail and life sciences contributed 24.6 percent of the company’s revenues.

Energy, Utilities, Communications & Services, which contributed 19 percent of Infosys’s sales, grew 0.8 percent. Telecom contributed 8 percent of the company’s overall sales.

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