India’s second largest IT company, Infosys, had been under tremendous pressure seeing continuous losses, which had forced its retired co-founder, NR Narayana Murthy to make a come back and resume the role of executive chairman. However, beating all odds, the company, on Friday posted unexpected results showing a near 4 per cent consolidated net profit for the April-June quarter.
Infosys’ revenues were USD 1,991 million for the quarter ended June 30, 2013, giving the company a QoQ growth of 2.7 per cent. The YoY growth clocked at 13.6 per cent.
The net profit was USD 418 million, seeing a QoQ decline of 5.9 per cent, and a meagre YoY growth of 0.5 per cent.
Reacting to the results, SD Shibulal, CEO and Managing Director, Infosys, said, “Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year.”
“We maintained our margins and continued making investments in the business,” said Rajiv Bansal, Chief Financial Officer, adding, “We have announced compensation increases for FY 14 effective July which will affect our margins in the future quarters.”
The company’s outlook (consolidated) for the quarter ending fiscal year ending March 31, 2014, under IFRS is optimistic and expects revenues to grow 6 per cent to 10 per cent.
Infosys’ focus on Cloud and Big Data as new growth areas has continued to yield results. The Cloud and Big Data business has executed over 100 engagements. Over the last quarter, Infosys won over 15 engagements across Cloud services and Big Data.