In Dr. Vishal Sikka's first full quarter as CEO of Infosys, the outsourcing company delivered solid financial results as it starts an overhaul---culturally and technically---to focus more on software and innovation.
Infosys reported fiscal third quarter earnings of $522 million, or 46 cents a share, on revenue of $2.22 billion for the three months ended Dec. 31. Infosys' sales were up 5.6 percent in the third quarter compared to a year ago.
More importantly, Infosys maintained its outlook for 7 percent to 9 percent growth in U.S. dollars. That outlook was in question given currency fluctuations around the world. Infosys ended the quarter with cash and equivalents of $5.53 billion.
For Sikka, who took over Infosys Aug. 1 after being a member of SAP's executive board, delivering solid results is critical as the company aims to create a new culture. Sikka has initiated classes in design thinking for 9,000 employees, honed the company's software strategy and worked to keep top performers in the fold via bonuses. Infosys ended the quarter with 169,638 employees and had gross additions of 13,154. The company also added 59 clients.
Sikka's challenge is to renew existing Infosys' existing business, which is characterized by high dollar low margin services deals, and new efforts in key categories such as cloud, big data, artificial intelligence, omnichannel retailing and next-gen payment systems.
Previously:Infosys' Sikka promotes 5,000 but will that stop the churn? | Vishal Sikka, father of SAP's HANA, to look after Infosys | SAP's Sikka steps down, company reshuffles executive board
In the meantime, Infosys saw mixed growth in financial services and retail, consumer product goods and life sciences were challenging industries. The energy industry has begun focusing on cost savings due to falling oil prices. Spending on analytics, multichannel commerce, digital marketing and ERP was solid. Deals are taking longer to compete.
Key points from Sikka on the Infosys conference call included: