Infosys posts 21.6% increase in net profit to Rs 2,886 crore

IT services vendor Infosys reported 21.6 percent increase in consolidated net profit to Rs 2,886 crore for the quarter ended June 30 on growth in business from Europe and improved operational efficiency.

The Bangalore-based firm had reported a net profit of Rs 2,374 crore in the year-ago period, it said in a BSE filing.

The consolidated revenue for the reported quarter was up 13.3 per cent to Rs 12,770 crore from Rs 11,267 crore in the year-ago period.

For FY’15, the country’s second-largest software services firm expects revenues to grow 7-9 per cent in USD terms and 5.6-7.6 per cent in rupee terms.

This is much below Nasscom’s industry growth outlook at 13-15 per cent in dollar terms for the fiscal.

“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realisation,” said Infosys CEO and Managing Director S D Shibulal.

In US dollar terms, its consolidated net profit rose 15.3 per cent to USD 482 million in the April-June quarter of this fiscal, while revenues rose 7.1 per cent to USD 2.13 billion.

“We improved operational performance as a result of our cost optimisation initiatives and a focus on increasing productivity and utilisation,” said Infosys CFO Rajiv Bansal.

This partially offsets the impact of compensation increases for employees this quarter, he added.

The company added 11,506 employees (gross), taking its headcount to 1,61,284 employees as on June 30, 2014. Its attrition rate was, however, higher at 19.5 per cent for the quarter.