IT behemoth InfosysBSE -1.90 % on Friday reported better-than-expected earnings for the quarter ended December 31, 2016. After surging as much as 4.49 per cent in early trade, shares of the company were trading 0.50 per cent down at Rs 995 at around 9.40 am (IST).
During the quarter, the company added 77 clients, two of which are in the over $75 million revenue category. Most analysts tracking the sector expected muted Q3, which also happens to be a seasonally weak quarter.
Here are the top 10 takeaways from Infosys’ third quarter earnings:
Guidance slightly down: For the financial year ended March 2017, Infosys revised the revenue guidance to 8.4-8.8 per cent from 8-9 per cent in constant currency terms. This translates into a revenue guidance to 7.2-7.6 per cent in dollar terms based on December 31 rates.
Sikka remains buoyant: CEO and MD Vishal Sikka in a release said, “Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations.”
Liquid assets dip: The company’s liquid assets, including cash and cash equivalents and investments, stood at $5,255 million as on December 31, 2016 compared with $5,349 million as of September 30, 2016 and $4,765 million as on December 31, 2015.
Recommended By Colombia
Attrition rate down: The attrition rate declined to 14.9 per cent on a standalone basis and 18.4 per cent on a consolidated basis in the October-December quarter. Standalone and consolidated attrition figures stood at 15.7 per cent and 20 per cent in the sequential quarter ended September 30, 2016.
Management changes: Infosys has appointed Ravikumar S as Deputy Chief Operating Officer reporting to Pravin Rao, Chief Operating Officer, with immediate effect. In addition to his current responsibility of heading the global delivery organisation, Ravikumar S will oversee certain strategic Business Enabling Functions in India.
Net profit jumps: For the quarter under review, Infosys’ bottom line jumped 2.83 per cent on a quarter-on-quarter basis to Rs 3,708 crore from Rs 3,606 crore in the sequential quarter ended September 30, 2016.
Revenues decline: The company reported 1.23 per cent drop in December quarter top line at Rs 17,273 crore against Rs 17310 crore reported for the previous quarter.
Total income rises: Total income of the company increased to Rs 18,093 crore, up 0.12 per cent from Rs 18,070 crore reported for the previous quarter.
Total expenditure down: For the October-December period, Infosys reported a consolidated total expenditure of Rs 12,939 crore, down 0.47 per cent from Rs 13,001 crore reported for the July-September quarter.
Operating profit grows: The company reported 1.68 per cent rise in operating profit at Rs 5,154 crore for the quarter under review against Rs 5,069 crore in the last quarter ended September 30.