Infosys profit up 21pc on US deals

July 12, 2014 - 12:59:00 am
Infosys CEO S D Shibulal (centre) along with CFO Rajiv Bansal (right) addresses the media after announcing the company’s first quarter results at their Bangalore facility yesterday.

MUMBAI: Indian outsourcing giant Infosys reported yesterday a better-than-expected 21 percent jump in quarterly net profit, after winning new deals from US clients.

The Nasdaq-listed firm, hit by an exodus of staff and a loss of market share, said consolidated net profit climbed to Rs28.86bn ($481m) in April-June from Rs23.74bn in the same period a year earlier.  Shares in the firm surged as much as 4.16 percent on the Bombay Stock Exchange in response to the results, which beat market estimates of around Rs27bn.

Infosys, India’s second largest IT services exporter by sales, forecast revenues would climb to 7-9 percent for the financial year that began in April.

“Growth is our top most priority. In fact, we can do much better than we have this past quarter,” Infosys CEO S D Shibulal rold reporters. “We are coming out of a tough environment where we faced multiple challenges externally and internally during the last three years,” he added.

Infosys last month announced a new chief executive and said its co-founder N R Narayana Murthy was stepping down as executive chairman after ending his one-year return stint as planned. Vishal Sikka, a former top executive from German giant SAP, takes over as chief executive next month.

Employee exodus is an ongoing problem for the firm which lost nearly 20 percent of its workforce in the April-June quarter, taking the total headcount to 161,284.