Infosys

The Q3FY17 numbers of Infosys were not very good but not as bad as expected. The company’s net profit rose 3% (QoQ) at Rs.3708 crore on a flat revenue of Rs.17.273 crore. Other income was up 8% at Rs.820 crore. The RBS cancellation along with the seasonal effect of “December” affected the dollar revenue, which fell 1.4% to $2531 crore. Its operating profit came in at Rs.4334 crore, up 0.6% and margins expanded also by the same 0.6% to 21.5%.

When Infosys declares numbers, all eyes, more than the results are on its guidance. And as expected, it lowered both its rupee as well as revenue guidance. It reduced the upper end of its revenue guidance from 9% to 8.8% but raised the lower end from 8% to 8.4%. Its full year dollar revenue guidance was down to 7.2-7.6% from 7.5-8.5% earlier and rupee revenue guidance to 10-10.4% from 10.9-11.9%.

In terms of verticals, BFSI is the only one which reported a lower degrowth at 0.8% (QoQ), compared to Manufacturing and hi-tech which was down 1.5%; retail, consumer packaged goods and logistics segment also reported degrowth of 1.5% while energy, utilities, communication & services dropped 2.1%.

In terms of geography, North America fell 0.6%, Europe decline 2.5%, India also fell 1% and RoW was down 3.2%. So there was a fall across all over.

Infosys said it added 77 clients during the quarter, taking the total active clients tally to 1,152 v/s 1,136 clients (QoQ). It reported highest ever utilisation of 81.9% in Q3. Attrition was down 1.6% - consolidated attrition rate dropped to 18.4% from 20%. And in terms of employee strength, it actually reduced work force by 66 v/s addition of 2779 in Q2.