January 24, 2019

India's Infosys profits soar after TCS slide

12 January 2018, 03:52 | Joann Bryant

Infosys Q3 profit jumps 38% to Rs 5129 crore on income tax reversal

Infosys Q3 profit jumps 38% to Rs 5,129 crore on income tax reversal

Infosys will also be looking to firmly return its focus to business growth after a tumultuous year that ended with former CEO Vishal Sikka and much of his board leaving, to be replaced by Salil Parekh within months.

India's second-largest outsourcer by revenue, after Tata Consultancy Services Ltd., said that its profit in the three months ended December 31 was 51.29 billion rupees ($805 million), compared with 37.08 billion rupees a year ago.

India's second-biggest IT services exporter Infosys Ltd posted a 38.3 percent jump in third-quarter profit, helped by tax benefits from the firm's deal with U.S. Internal Revenue Service.

The Mumbai- and New York-listed company also maintained its dollar revenue growth outlook for this fiscal year between 5.5% and 6.5%, barring currency fluctuations.

In a regulatory filing on the BSE, the IT major said consolidated revenue, however, grew 3 per cent annually to Rs 17,794 crore for the quarter under review (Q3) from Rs 17,273 crore in the same period year ago.

The profit rise was due to the conclusion of the Advance Pricing Agreement, which had a positive impact on consolidated basic earnings per share in the quarter by about 6.29 rupees.

"Addressing the first press conference post his appointment as CEO of the IT major, Parekh said the ongoing digital disruption has created a new opportunity for the company". ".Our Q3 performance is strong. We had 8 per cent year-on-year growth and 24.3 per cent operating margin with $593 million of free cash flow".

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".

Revenues are expected to grow 2.1%-3.1% in INR terms based on the exchange rates as of December 31, 2017. Its total headcount stood at 2.01 lakh at the end of December quarter.

Meanwhile, Rajesh K. Murthy, President, has resigned from the company citing personal reasons.

Q3 revenues grew year-on-year by 8.0% in United States dollars terms; 5.8% in constant currency terms and 3 percent in rupee terms to Rs17794 crore for the quarter ended December 2017.

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