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Infosys posts better-than-expected third-quarter profit on tax deal

Reuters 

(Reuters) - India's second-biggest IT services exporter Ltd posted third-quarter profit well above estimates, helped by benefits from the firm's deal with the U. S. Internal Service (IRS).

The company had signed an Advance Pricing Agreement with the U. S.

IRS this week, resulting in an effective rate of about 100 basis points lower going forward.

The conclusion of the agreement had a positive impact on consolidated basic earnings per share in the quarter by about 6.29 rupees. The company's basic earnings for the quarter was 22.55 rupees per share, it said.

Profit rose 38.3 percent to 51.29 billion rupees ($806 million) in the three months ended Dec. 31, said on Friday. That compared with analysts' average estimate of 37.10 billion rupees, according to data. (http://bit.ly/2qSWIVS)

from operations rose 3 percent to 177.9 billion rupees from a year earlier, with from the financial services segment down 0.4 percent at 46.43 billion rupees, the company said.

also maintained its expectation for full-year growth of between 5.5 and 6.5 percent.

This is the first result announcement since Salil Parekh took over as this month. His predecessor quit late last year after a long-drawn public fued with Infosys' founders. ($1 = 63.6400 Indian rupees)

(Reporting by Tanvi Mehta and Jessica Kuruthukulangara in Bengaluru; Editing by and Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 16:32 IST
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