Infosys net zooms 38% for third quarter

Infosys announced its first results under new CEO Salil Parekh

Infosys announced its first results under new CEO Salil Parekh

A Bloomberg poll projected Infosys net profit and revenue at Rs 3,610 crore and Rs 17,842 crore respectively in Q3FY18.

Bengaluru, Jan 12 Underlining the huge potential of the digital business, Infosys CEO and MD Salil Parekh today said it is a critical element of the market.

The spurt in profit has been largely due to a $225 million (Rs1,432 crore) tax reversal in the United States, the company's biggest market.

Consolidated revenue, however, grew 8 per cent annually to $2,755 million from $2,551 million in the like period year ago but remained flat (1 per cent) sequentially from $2,728 million a quarter ago.

In September quarter, Infosys had reported a net profit of Rs 3,726 crore.

The reversal of the tax provisions will have a positive impact on its consolidated basic earnings per share (EPS) for the December, 2017 quarter by approximately $0.10, Infosys said in a statement. Profit rose 38.3 percent to 51.29 billion rupees ($806 million) in the three months ended Dec 31, Infosys said on Friday.

"Increased adoption of our digital offerings and new services helped stabilise" billing rates, COO Pravin Rao said in the press release. ".Our Q3 performance is strong".

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The IT major has retained its full-year revenue growth guidance in constant currency terms at 5.5-6.5 percent and also maintained its EBIT margins at 23-25 percent.

"During the quarter, we provided compensation increases and higher variable payouts to our employees".

Highlighting the emergence of technology in terms of Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Salil said Infosys is progressing towards stability and is "ready to serve clients in the new areas of demand". "Our investments in employees continues to deliver results as reflected in lower attrition".

Chief Financial Officer M.D. Ranganath said operating margins were stable on improvement in efficiency parameters.

Infosys Ltd ( INFY ) announced for the fiscal year ending March 31, 2018, the company expects, under IFRS: revenues to grow 5.5%-6.5% in constant currency; or revenues to grow 6.5%-7.5% in Dollars terms based on the exchange rates as of December 31, 2017. "We also executed the share buyback of Rs 13,000 crore in line with our capital allocation policy", he added.

Asked how he will build a strong relationship with the company's founders in the wake of previous CEO Vishal Sikka's exit on an unpleasant note, Parekh said, "This is a phenomenal company started by people who had tremendous vision".

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