Company reported a 2.6 per cent sequential decline in quarterly profit
Infosys (Photo: DC archives)
Chennai: India’s second largest software exporter Infosys reported a 2.6 per cent sequential decline in quarterly profit that was below the expectations. Revenues of the company fell to Rs 13,411 crore during January-March quarter from Rs 13,796 crore in October- December quarter because of the pricing pressure.The net profit of the company fell 4.7 per cent to reach Rs3,097 crore in the fourth quarter of last financial year compared to Rs3,250 crore of the third quarter.
During the entire fiscal, Infosys has reported a 6.4 per cent growth in revenue at Rs 53,319 crore. The net profit grew by 15.8 per cent at Rs12,329 crore.For the financial year ending March 2016, the company projected a revenue growth of 6.2-8.2 per cent in dollar terms and 10-12 per cent in constant currency terms.Commenting on the results, Dr Vishal Sikka, managing director and chief executive officer of Infosys, said that, “The traditional model of IT outsourcing is dying. The industry is going through fundamental and structural transition and it is a challenging quarter.”
Not only Infosys, but major IT firms like TCS, HCL Tech and Wipro have reported feeble numbers.“In a long term perspective, this is not a matter to worry. Our investments in innovation and in renewing our capabilities are helping to elevate our client relationships,” he said.Dr Sikka said he hopes the company, once a bellwether of India's $150 billion IT services industry, will lead the industry by 2016-17.
He said that by the year 2020, the company is aspiring to reach $20 billion and 30 per cent operational margin.This is the first that the Bengaluru-based firm has announced its results outside of Karnataka — Chennai.
( Source : dc correspondent )
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