Infosys has maintained FY 15 guidance of 7% to 9% revenue growth in USD terms which is not very encouraging. We would expect other majors to show double digit revenue growth for FY 15 given that the US economy is on a slow but steady recovery path.
Infosys has gained 5.5% post its third quarter FY 2014-15 results on the back of the company performing above the market expectation.
Infosys reported a 13% increase in the consolidated net profit to Rs.32,500 million from Rs.30,960 million on a year on year basis and an increase of 5% from Rs.28,750 million on a sequential quarter on quarter basis. The sales increased by 5.91% to Rs.1,37,960 million from Rs.1,30,260 million on a year on year basis and an increase of 3.4% from Rs.1,33,420 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 59 clients and 13,154 employees (gross) during Q3FY15.
Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were USD 5,532million as on December31, 2014 as compared to USD 5,444 million as on September30, 2014.
The dollar denominated consolidated net profit has shown an increase of 12.74% to USD 522 million from USD 463 million on a year on year basis and an increase of 2.15% from USD 511 million on a sequential quarter on quarter basis. The dollar denominated sales increased by 5.61% to USD 2.218 billion from USD 2.1 billion on a year on year basis and an increase of 0.8% from USD 2.201 billion on a sequential quarter on quarter basis.
During the quarter the company has seen broad based volume growth, increased utilization and strong client additions. Sequential Revenue growth was adversely affected impacted due to the USD appreciation against other major currencies.
BFSI, Manufacturing and Healthcare segments have shown growth while Retail has declined marginally quarter on quarter and year on year. Energy continues to remain flat in contribution to revenues quarter on quarter and year on year.
The non US geographical segments have shown growth in North America, and muted growth in Europe on a sequential quarter on quarter basis.
The company has expanded its innovation fund from the current USD 100 million to USD 500 million to support the creation of a global eco-system of strategic partners. The capital will be used to invest into young companies world-wide innovating in areas such as Artificial Intelligence, Automation, Internet of Things, Collaboration and Design.