Infosys FY 15 guidance of 7% to 9% revenue growth in USD terms is not very encouraging. We would expect other majors to show double digit revenue growth for FY 15 given that both the US and European economies are on a slow but steady recovery path. The company has leadership issues that need to be sorted out for it to get back its premier IT company status. Infosys will be an underperformer until its leadership issues are sorted out.
Infosys has gained 1.25% post its first quarter FY 2014-15 results on the back of the company performing above the market expectation. Infosys reported a 21.57% increase in the consolidated net profit to Rs.28,860 million from Rs.23,740 million on a year on year basis and a decline of 3.54% from Rs.29,920 million on a sequential quarter on quarter basis. The sales increased by 13.34% to Rs.1,27,700 million from Rs.1,12,670 million on a year on year basis and a decrease of 0.82% from Rs.1,28,750 million on a sequential quarter on quarter basis. The company attributes the growth in sales and profitability to improvement in the global economic environment compared to previous year. The company added 61 clients and 11,506 employees (gross) during Q1FY15.
The dollar denominated consolidated net profit has shown an increase of 7.1% to USD 482 million from USD 418 million on a year on year basis and a decline of 1% from USD 487 million on a sequential quarter on quarter basis. The dollar denominated sales increased by 7.1% to USD 2.133 billion from USD 1.991 billion on a year on year basis and an increase of 2% from USD 2.092 billion on a sequential quarter on quarter basis. The average USD/INR rate for Q1FY15 period stands at Rs.60.18 per USD compared to Rs.59.92 per USD for Q4FY14.
The non US geographical segments have shown growth with North America growing by 1% and rest others declining marginally on a sequential quarter on quarter basis.