Infosys on Friday reported a net profit of Rs. 3,597 crore on sales of Rs. 16,550 crore in the March quarter, surpassing the Street estimates for the fourth straight time.
India’s second largest outsourcer also put out a better-than-expected revenue growth forecast for 2016-17 financial year in an indication that its revival, after years of underperformance, is firmly on track. Analysts have attributed the turnaround in Infosys to the leadership of its first non-founder CEO Vishal Sikka.
“I am proud of what our teams have achieved this quarter and in the year… And yet despite these heartening results, they are still based on metrics of the past, of the way the industry has been…We are still very much at the beginning of this journey,” said Dr. Sikka.
Infosys expects constant currency revenue to grow at 11.5-13.5 per cent in FY17, faster than industry growth expectations of 10-12 per cent.
Analysts told NDTV Profit that Infosys shares are likely to see strong buying interest on Monday, when markets open for trade. Domestic stock markets are closed today for Ram Navami.
“Its (Q4 numbers) pretty positive on the guidance front, next week the stock should do very well,” said Sushil Choksey, director of Rosy Blue Securities
Infosys recommended a final dividend of Rs. 14.25 per equity share for the financial year ended March 31, 2016. It also announced management changes, appointing Mohit Joshi, Ravi Kumar S and Sandeep Dadlani as presidents of the company effective immediately.