Sunday , February 24 2019

India’s Infosys profit surges 38 %

epa05260238 An exterior view of the Infosys headquarters, in Bangalore, India, 15 April 2016, where Infosys CEO and Managing Director Vishal Sikka (unseen) announce the company's Q4 results earlier the same day. The Indian information technology and consulting company reported a strong growth in the quarter ending March, leading its expected revenue growth between 11.8 to 13.8 per cent in dollar terms. Sikka has set the goal to raise the company's revenue to dollar 20 billion by 2020.  EPA/JAGADEESH NV


Infosys Ltd. posted a 38 percent surge in third-quarter profit on a tax benefit and investments in digital technologies as its new chief executive officer maintained forecasts for slowing sales growth.
Net income was 51.3 billion rupees ($806 million) in the three months ended in December, compared with the 36.1 billion rupee average of estimates compiled by Bloomberg. The company booked a $225 million gain, part of a series of tax-provision reversals agreed upon with US tax authorities. Sales rose just 3 percent in the quarter. The earnings announcement is the first since Salil Parekh took over as CEO after a boardroom tussle that ushered out Vishal Sikka. Asia’s second-largest software services company had been an investor favourite before a very public clash between its directors and several founders over corporate governance issues. Parekh’s pledged to keep steering Infosys away from a traditionally labour-intensive model. “Infosys results are decent, actually positive as there is no negative,” said Sushant Kumar, fund manager at Mumbai-based Raay Global Investments Pvt. “After Sikka’s exit, market was expecting a status quo on results front and it came.”
Full-year revenue will rise 5.5 to 6.5 percent in constant currency terms, while in US dollars growth is projected at 6.5 to 7.5 percent, a prediction that was cut in 2017 after the boardroom upheaval. Sales in fiscal 2017 rose 9.7 percent.

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