Friday, 15 July 2016

Infosys Q1 Net Profit Down Over 4% On Quarter

Bangalore: Indian multinational corporation Infosys has reported a consolidated net profit of Rs 3,436 crore in the April-June quarter, a 4.29 percent drop from the Rs 3,590 crore net profit posted in the Jan-Mar quarter.
However, compared to the year ago period, Infosys’ net profit rose 13.4 percent. The company had posted a net profit of Rs 3,028 crore in the same period last year.
Soon after the results, the company’s stock crashed over 9 percent. At 10:45 hours, Infosys stock was down Rs 1,076.65, down Rs 99.20 or 8.44 percent lower.
In a release, CEO Dr Vishal Sikka said, “We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1.” “Going forward, we will continue our strong focus on our long-term goals and vision of transforming Infosys where open, intelligent technology amplifies people and frees them to innovate in a culture of learning and collaboration, while bringing operational excellence and cost discipline to every aspect of our business,”  he added.
The company’s revenue grew to Rs 16,782 crore in the quarter, up from Rs 16,550 crore posted in the Jan-Mar period.
Compared to the year ago period, Infosys’ revenue has risen 16.91 percent from Rs 14,354 crore to Rs 16,782 crore.

The company said it has cut its revenue guidance to 10.5 - 12 percent in the constant currency terms for 2016-17 from 11.5 - 13.5 percent.

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