Deal with United States administration boosts Q3 profit; FY18 sales growth outlook maintained at 5.5-6.5%.
The Bangalore-based company reported a whopping 38 percent year-on-year jump in consolidated net profit for the quarter ending December 31.
Sequentially too, revenue growth was flat (1 per cent) from Rs 17,657 crore quarter ago. EBIT margin sqw a marginal improvement and went up 0.1 per cent to 24.3 per cent during the quarter compared with 24.1 per cent.
TCS on Thursday posted a 1.3 per cent quarter-on-quarter (QoQ) increase in net profit at Rs 6,531 crore.
The 38.3 percent jump was largely due to a $225 million (Rs 1,432 crore) tax reversal in the USA, the company's biggest market. Considering a boost in the company's net profit, Infosys new CEO Salil Parekh said he would lay out strategic priorities for the company to build a "roadmap for future". The founders had alleged corporate governance lapses and questioned the Dollars 200 million Panaya acquisition under previous management and also flagged the high severance pay to former employees.
"Addressing the first press conference post his appointment as CEO of the IT major, Parekh said the ongoing digital disruption has created a new opportunity for the company".
"We had 8% year-on-year growth and 24.3% operating margin with US$ 593 million of free cash flow", Parekh added.
Infosys' contant currency revenue growth came in at 5.6% as on December 2017. The churn saw Infosys bring back former CEO Nandan Nilekani as the new chairman. ".Our Q3 performance is strong".
"We are progressing towards stability and are well positioned to serve our clients in the new areas of demand", Parekh said, referring to the recent turmoil surrounding the departure of his predecessor Vishal Sikka.
Infosys reported a quarter that was largely in line with expectations and said it retains its full-year revenue growth guidance at 5.5-6.5%, excluding the impact of currency movements.
Infosys total employees stood at 2,01,691 as on December 2017, higher from 1,98,440 employees as on September 2017 and 1,99,763 employees in December 2016.
On the management changes, the company said that Rajesh K Murthy, President, has resigned citing personal reasons and his resignation will be effective January 31, it added.
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