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

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

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

Salil Parekh, the new CEO and managing director of Infosys, took charge on January 2, after a damaging spat between the company's founders and the board led to former CEO Vishal Sikka's resignation and a management restructuring.

"On account of the conclusion of an APA (Advance Pricing Agreement) with the US Internal Revenue Service during the quarter, net profit for Q3 increased", it added in the statement. Infosys retained full-year revenue guidance as well in the third quarter.

December-quarter sales rose 8 percent to $2,755 million from $2,551 million a year ago, and increased 1 percent from the previous quarter.

Infosys's operating margin improved 10 basis points sequentially to 24.3% from 24.2% in the July-September period.

The Indian MNC earlier reported a net profit of Dollars 796 million, thus registering a quarterly growth of 37.6 percent, and YoY growth of 45.4 percent.

Infosys' contant currency revenue growth came in at 5.6% as on December 2017.

(L-R) Infosys' Chief Operating Officer Pravin Rao, Chief Executive Officer Salil S. Parekh, and Chief Financial Officer Ranganath D. Mavinakere address the media during the announcement of the company's quarterly results at its headquarters in Bengaluru, India, January 12, 2018. "Everything that I have seen in this company reconfirms that, and my hope and expectations would be to reconnect with the founders, the original people who started the company, and pay respect to them in that light". His exit also highlights the challenge of senior-level attrition, an issue that has been a major headache for Infosys, with at least a dozen executives above the rank of senior vice-president leaving the company over the past 18 months. The formation of the committee of directors caused a lot of heartburn for Sikka, Mint had reported on 21 August.

"This is a phenomenal company that was started by people who had tremendous vision". Mr. Parekh, 53, an ex-Capgemini veteran, said. Under Parekh, Infosys is now attempting to bring the focus back on growth and business.

Revenues were at Rs17,794 crore for the quarter ended 31 December 2017 while operating profit stood at Rs4,319 crore for the quarter, showing a 0.4 per cent decline year-on-year and a 1.7 per cent growth sequentially. Stressing that each of its clients is facing digital disruption, Parekh said that this creates an opportunity for the company. That compares with the 0.7 percent sequential rise and 7.7 percent gain on the year-earlier period, that analysts at HDFC Securities projected.

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