Infosys
Infosys did not disappoint, neither on the earnings front nor on the guidance front. For Q3FY14, the company posted a consolidated net profit at Rs.2875 crore, up 19% QoQ and 21% on YoY. This was on a very flat sequential revenue growth at Rs.13,206 crore, though YoY, it was up 25%. The net profit would have come in higher during the quarter but for the additional expense of Rs.219 crore it had to spend on visa related expenses.
In terms of geographical distribution, North America continues to remain its biggest contributor at 60% f the total revenue earned, Europe is at 24%, India is at 2.6% and RoW is at 12.5%. And in terms of industry, BFSI leads at 33.5% of the revenue, retail and life sciences at 24.6%, , manufacturing at 22.8%, energy, utilities, communication and services at 19.1%. All the geographies and industries have remained stable, both YoY as well as QoQ.
Its number of active clients during the quarter rose from 873 in Q2 to 888 though it added only 54 new clients compared to 68 in Q2. One cannot blame this on seasonality as in previous Q3, it had managed to add 89 new clients. So the company really needs to work on increasing clientele while increasing prices to combat the rising cost of visa.
Its total employee strength is at 1,58,404 and this time around, it reduced net employees by 1823 after adding on 2964 in Q2. The utilization is better at 78% (excluding trainees) compared to 73.2% (YoY) though flat QoQ. Attrition rate has gone up to 18.1% v/s 17.3% in Q2 and 15.1% in Q3FY13.
The best news was on the guidance front. The company raised its FY14 revenue guidance to 11.5 to 12% from 9-10% given in Q2FY14. Consolidated rupee revenue is expected to grow 24.4 to 24.9%, compared to 21 to 23% guidance issued in Q2. Rupee to dollar conversion rate is assumed at Rs.61.81 v.s Rs.62.61 in Q2.
As at 31st Dec 2013, its liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds stood at Rs.27,440 crore v/s Rs.26,907 crore in Q2.