Infosys reports 37.6% rise in net profit in October-December 2017 quarter

Infosys Q3 profit jumps 38% to Rs 5,129 crore on income tax reversal

Infosys Q3 profit jumps 38% to Rs 5,129 crore on income tax reversal

The company's shares closed 0.26% higher, at Rs 1,078.40 on Bombay Stock Exchange.

By these figues, Infosys had witnessed a jump of 37.6 per cent on a quarter-on-quarter basis and 38.3 per cent on a year-on-year basis. TCS had posted a net profit of Rs 6,446 crore in the sequential quarter ended September 30, 2017.

Beating market expectations, Bengaluru-based, IT giant Infosys on Friday reported a net profit of Rs 5,129 crore for the third quarter ended December 31, 2017, up 38% as compared with Rs 3,708 crore for the corresponding quarter a year ago.

Infosys consolidated revenue for the quarter came in at Rs. 17794 crores, registering 1.29% QoQ increase.

The company maintained revenue guidance of 5.5 per cent -6.5 per cent in constant currency term and 6.5-7.5 per cent in dollar terms.

The reversal of the tax provisions will have a positive impact on its consolidated basic earnings per share (EPS) for the December, 2017 quarter by approximately $0.10, Infosys said in a statement. His predecessor Vishal Sikka quit late past year after a long-drawn public fued with Infosys' founders. The churn saw Infosys bring back former CEO Nandan Nilekani as the new chairman.

In his first media interaction after taking charge as Infosys CEO and MD on January 2, Parekh on Friday said that his immediate priorities would include connecting with employees and clients to build a "roadmap for future" that will be announced in April. "We had 8% year-on-year growth and 24.3% operating margin with US$ 593 million of free cash flow." said Salil Parekh, CEO & MD. Analysts at HDFC Securities projected profits of Rs 5,182 crore, including the tax reversal, which implies they expected Infosys to report profit growth of 1 percent, excluding the tax reversal component. Its total headcount stood at 2.01 lakh at the end of December quarter.

However, Infosys' Chief Operating Officer U.B. Pravin Rao said increased adoption of digital solutions and new services has helped stabilize its price realization that has been under pressure for almost two years.

Highlighting the emergence of technology in terms of Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Salil said Infosys is progressing towards stability and is "ready to serve clients in the new areas of demand".

Infosys announced that Rajesh K. Murthy, President, has resigned from the company for personal reasons.

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