Infosys revenue up 6% in dollars, trims outlook for FY

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By memberservices@staffingindustry.com (Craig Johnson)

Infosys’ (NYSE: INFY) revenue rose 6.0% year over year to $2.55 billion in US dollars in its fiscal third quarter ended Dec. 31. The increase was 7.3% in constant currency. Net profit also rose at the global IT services and outsourcing provider.

However, the company again revised its consolidated revenue guidance for the fiscal year ending March 31, 2017. It now expects revenue growth of between 8.4% and 8.8% in constant currency, narrowed from an outlook of 8.0% to 9.0% provided with the second-quarter earnings report.

(US$ millions)
3Q16
3Q15
% change
constant currency
Revenue
$2,551
$2,407
6.0%
7.3%
Gross profit
$950
$895
6.1%

Gross margin percentage
37.2%
37.2%

Net profit
$547
$524
4.4%

Reuters reported Infosys pared its full-year revenue growth outlook as it fights uncertainties in its biggest markets that could curb client spending on technology. Infosys and its rivals in India’s $150 billion software services sector have struggled in recent quarters as major clients in the United States and Europe, their biggest markets, held back discretionary spending, awaiting clarity on policy shifts under US President-elect Donald Trump and possible changes following the UK’s Brexit.


Quote

“Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations,” said CEO and Vishal Sikka. “Beyond the quarterly numbers, we continue to focus sharply on the execution of our strategy, as reflected in the growing embrace of AI-based automation, growth in our new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture.”


Share price and market cap

Shares in Infosys closed down 0.07% at $14.49 and the company has a market cap of $31.81 billion, according to Yahoo.

Source:: Staffing Industry Analysts Daily Newsfeed

      

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