Infosys earns $2.04b profit during FY 2015-16

Innovation and automation besides winning new clients has helped the company's improved performance this financial year.
Written by V L Srinivasan, Contributor

Beating industry expectations, global IT major Infosys has reported consolidated profit of around $2.04 billion (13,491 crore rupees), registering a growth of 9.4 percent for the FY 2015-16 compared with previous year.

The total revenues of the Bengaluru-based company for the fiscal ended March 31, 2016 stood around $9.5 billion (62,441 crore rupees), registering a year-on-year growth of 17.1 percent, while operating profit was around $2.4 billion (15,620 crore rupees) during the same period.

For the quarter ending March 31, 2016, the firm reported a 16.2 percent growth in consolidated net profit of over $540 million (3,597 crore rupees), the IT major disclosed in a filing to Bombay Stock Exchange on Friday.

The attrition rate in the company also stood at 17.3 percent compared with 18.1 percent quarter-on-quarter.

Elated with the results, Infosys Managing Director and CEO Vishal Sikka said that he was proud of the company's achievements in his first fiscal year after joining the company.

"We started the year just two quarters into a strategy to completely re-imagine the notion of services and to transform Infosys. Over the course of this year, we saw this strategy -- of bringing automation and innovation to our clients, on a foundation of learning and education -- start to show results in the organic growth of our client relationships, in our win rates in large deals, and in the types of projects we are seeing in strategic areas where we never participated before," Sikka and others told a news conference.

The results have come as a shot in the arm for the industry, which was struggling on account of global slowdown and also due to massive floods in the south Indian city of Chennai in December, which caused a loss of an estimated $60 million.

"I am proud of what our teams have achieved this quarter and in the year ... And yet despite these heartening results, they are still based on metrics of the past, of the way the industry has been ... We are still very much at the beginning of this journey," Sikka said.

The number of clients in the quarter ending March 2016 increased to 14 from 13 in the $100 million+ category, while 3 clients were added in $75 million+ category, taking the total to 31. One client in the $50 million+ category was also added. "We won 6 large deals in Q4 and want to win quarterly deal win rate to $1 billion," Sikka said.

With regard to next fiscal, Sikka said that the company expects its revenue to perform better than the IT industry body Nasscom's guidance. Nasscom has predicted that the IT exports would grow at a slower pace of 10-12 percent in 2016-17.

Infosys expects its revenue to grow between 11.5 percent and 13.5 percent in constant currency terms for the year ending March 31, 2017. The revenue outlook for coming year in rupee terms is expected to grow between 12.7 percent and 14.7 percent.

Infosys also announced the elevation of its executive vice presidents Mohit Joshi, S Ravi Kumar, and Sandeep Dadlani as presidents of the company with immediate effect.

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