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Infosys net profit rises 21.4% to Rs 2,875 cr; revenue growth forecast raised

Mumbai: The country's second-largest software services firm, Infosys, today reported a 21.4 per cent increase in net profit to Rs 2,875 crore for the third quarter ended December 31, 2013, against Rs 2,369 crore in
PTI January 10, 2014 11:49 IST
PTI
Mumbai: The country's second-largest software services firm, Infosys, today reported a 21.4 per cent increase in net profit to Rs 2,875 crore for the third quarter ended December 31, 2013, against Rs 2,369 crore in the same period a year earlier.

Revenues rose 25 per cent to Rs 13,026 crore from Rs 10,424 crore, Infosys said in a BSE filing.

Analysts had expected the net profit to increase 13-16 per cent and revenues to climb 23-26 per cent.

“The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives,” Infosys CEO and Managing Director S.D. Shibulal said.

The company continues to differentiate itself to seize the growth opportunities, he added.

“The recent changes in organisational structure will enable us to strengthen client relationships and increase market share,” he said.

Revenue guidance

Infosys raised its revenue growth forecast to 24.4-24.9 per cent for the financial year ending March 31, 2014, from 21-22 per cent estimated earlier.

The company's shares gained 1.88 per cent to Rs 3,515.90 in early trade on the BSE.

Liquid assets

Infosys had liquid assets, including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds valued at Rs 27,440 crore as of December 31, 2013 against Rs 26,907 crore at the end of September 30, 2013.

In dollar terms, the company's profits grew 6.7 per cent to $463 million during October-December quarter from a year earlier, while revenues rose 9.9 per cent to $2.1 billion.

Dollar revenue growth

Infosys has increased its dollar revenue growth guidance for this financial year to 11.5-12 per cent from 9-10 per cent earlier.

“During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations,” Infosys Chief Financial Officer Rajiv Bansal said, adding that the company remains focussed on making investments to secure and grow its future.

Headcount, attrition rate

Though Infosys added 6,682 employees on a gross level during the quarter, the total headcount fell by 1,823 from the end of September 30, 2013 to 1,58,404.

The attrition rate stood at 18.1 per cent on the basis of the last 12 months. The company added 54 clients during the quarter.

The third quarter is traditionally a slow one because of fewer working days.