The company’s revenue in dollar terms grew by 2.2 percent to USD 2,501 million and constant currency dollar revenue growth stood at 1.7 percent compared with preceding quarter.
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The Bengaluru-based firm had reported a net profit of Rs 3,028 crore in the year-ago period as per Indian Accounting Standard, it said in a BSE filing.
The outlook translates into 11.7-13.2% revenue growth in rupee terms and 10.8-12.3% in dollar terms.
The company previously was expecting revenue growth at 11.8 percent -13.8 percent in USA dollar terms and 11.5 percent-13.5 percent in constant currency.
Revenue in rupee terms for the first quarter grew by 16.9% to Rs 16,782 crore and operating profits grew by 17.4% to Rs 4,047 crore, as compared to the first quarter last fiscal.
India’s second-largest IT company Infosys Ltd on Friday reported a 13% jump in its June quarter (Q1) net profit on new client addition, but cut its annual sales forecast that sent the stock crashing. “Dr. Sikka is working on a long term goal of transforming Infosys from a typical IT service company into a new-age digitally focused consulting company”.
After falling 3.66 per cent to Rs 2,428.05 in intra-day trade, shares of the company finally ended at Rs 2,441.90, down 3.11 per cent on BSE.
“The numbers are disappointing and they are going to face a challenge getting back to the driver’s seat in the remaining three quarters”, said Thomas George, a Bangalore-based senior vice president at CyberMedia Research. Its net profit also has increased by 9.23 per cent to Rs 3457 crore in Q1FY17 on a yearly basis. I am dissappointed with the revenue perormance that we had in Q1. Banks and financial sector contribute a third of Infosys’ revenue. In the year-ago quarter, it earned $476 million or $0.22 a share. The technology major has relaunched its ESOP programme after a gap of about 13 years for junior to middle level management. Automation continues to be a core lever in the renewal of our traditional service offerings.
“We are really encouraged, we also track high performers’ attrition, which has come down”.
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The operating margin at 24.1 per cent was impacted by wage hikes (1.4 per cent impact) and visa charges (0.8 per cent), but was partly offset by cost optimisation efforts. “Given this, we lowered our guidance”, he said.
