Infosys springs a surprise by beating expectations and raising revenue guidance
TCS cited the holiday season and the Chennai floods as the two main reasons for the lacklustre performance. But Infosys beat the seasonality to post a volume growth of 3.1%.
Infosys posted revenue of Rs 15,902 crore for the quarter ended Dec 31, 2015 (up 1.7% from the preceding quarter and up 15.3% from the third quarter of 2014).
In US dollar terms, the company's revenue was up 0.6% from the previous quarter (up 1.1% in constant currency) and up 8.5% from third quarter in 2014 (12.5% in constant currency).
The Company’s outlook (consolidated) for the fiscal year ending Mar 31, 2016, under the International Financial Reporting Standards (IFRS) is as follows:
-Revenue guidance increased to 12.8%-13.2% in constant currency
-Revenue guidance increased to 16.2%-16.6% in INR terms based on the exchange rates as of Dec 31, 2015 (at a conversion rate of 1 US$ = Rs 66.16)
U B Pravin Rao, President & COO. said, "The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter. Our continued focus on employee engagement is paying dividends resulting in lower attrition. We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity.”
M.D. Ranganath, CFO, said, “We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters.”
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