Infosys

Infosys was a pretty big loser on the bourses yesterday. Going back to the tradition of being the first to announce quarterly results in IT and that too first thing in the morning, the market though does not seem to be too impressed.  The reason was the cut in its guidance despite numbers exceeding most expectations.

The company lowered its FY16 dollar revenue guidance from 7.2% -9.2% to 6.4-8.4%. It has though maintained its guidance at constant currency at 10-12%. The market is also perturbed by the fact that its CFO, Rajiv Bansal stepped down, effective today. This “stepping down” which one has seen so much in the past, continues to haunt the company.

On the financial numbers front, its net profit for the quarter rose 12% (QoQ) at Rs.3398 crore – the highest in 16 quarters! On the revenue growth front, rupee revenue rose 9% at Rs.15,635 crore while dollar revenue at US$2392 million was up 6%.

During the quarter, the company added 8453 employees and its total head count now stands at 1,87,976. Attrition levels were at 19.2%, down from 24.8% (YoY) though marginally up QoQ from 19.2%. Cash balance stood at Rs.32,099 crore.

In terms of geographical growth, North America grew by 6.1% sequentially; Europe grew by 8.3%, India grew by 9.4% while RoW grew 0.8%. In Q2, its per capita revenue increased 2.6% in reported terms and 3.4% in constant currency terms. It signed 5 large deals signed with TCV of $ 983 mn and added 82 clients; total number of clients crosses 1,000.