Infosys has posted revenue of $2,728 million (+5.4 percent), operating profit of $659 million (+2.4 percent) and net profit of $578 million (+7.3 percent) for the quarter ended September 30, 2017.
The September quarter is the first quarter for the global technology outsourcing company after the surprise resignation of Vishal Sikka, who was under pressure from co-founder Narayana Murthy and other stakeholders of Infosys, to improve financial performance.
The Indian software exporter said the company is continuing to search for a new CEO. Recently, Infosys appointed U B Pravin Rao as interim CEO and managing director and Nandan Nilekani as the chairman. Both the appointments follow the departure of CEO Vishal Sikka.
“We continue to focus on executing on the theme of software enabled services and on accelerating growth of our new services portfolio.” said U B Pravin Rao, interim CEO and managing director of Infosys.
Infosys did not increase its manpower during the quarter. In fact, the number of employees of Infosys fell to 1,98,440 in September quarter from 1,98,553 from June quarter. The attrition at Infosys was 17.2 percent in September quarter against 16.9 percent in June quarter.
Infosys said revenues are expected to grow 6.5 percent – 7.5 percent during the current fiscal in USD terms based on the exchange rates as of September 30, 2017.
Infosys said its new board reviewed all programs across the organization, accelerated execution plans and prioritized key areas of investments across the services and software portfolios.
“An important outcome of the exercise is a reassertion that our strategic direction will continue to be driven with a portfolio of market relevant design, consulting and technology services, enabled by software. The execution of this strategy positions us as the partner our clients can count on to accelerate their digital transformation journey,” Infosys said.
Sarabjit Kour Nangra, VP Research – IT, Angel Broking, said: “In terms of the industries, FSI grew by 2.6 percent, MFG & Hi-Tech grew by 1.2 percent, RCL grew by 1.7 percent and ECS grew by 3 percent. In terms of geography, the USA grew by 1.9 percent, Europe grew by 4.1 percent, and India grew by 5.1 percent while ROW grew by 2.3 percent.
EBIT margin came in at 24.2 percent vs 23.6 percent expected, mainly driven by improved utilization levels (which came in at 84.7 percent vs 84.0 percent in 1QFY2018. Consequently, PAT came in at INR 3,726cr vs INR 3,590cr expected, a rise of 7.0 percent.