Infosys Q4 net profit rises 16.4% y-o-y to Rs 3,597 crore

IT bellwether reports 23.4% jump in its revenues to Rs 16,550 crore

India's second-largest software firm, Infosys, reported a 16.14 % rise in fourth quarter profits to Rs 3,597 crore, while the company’s revenue grew 23.4% to Rs 16,550 crore.

Infosys, the first large Indian IT services firm to post results, had reported Rs 3,097 crore profit on revenue of Rs 13,411 crore in the January to March quarter last year. 

The Bengaluru-based IT bellwether forecast dollar revenue to grow between 11.5% and 13.5% in constant currency and 11.8% and 13.8% in March 2016 exchange rates for the year ahead.

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This is higher than the projections of Nasscom, the industry’s trade body, which estimates India's software industry growth to be between 10 and 12% in financial year 2016-17.

The Vishal Sikka-led company, which has increased its focus on automation and artificial intelligence (AI) to generate more technology outsourcing business from global clients did a management rejig, elevating young executives to senior roles in the company. S Ravi Kumar, chief delivery officer, Sandeep Dadlani, global head of retail and Mohit Joshi, head of financial services have been elevated to the roles of President. 

Sikka, the first non-founder chief executive officer at Infosys, got his contract extended till 2021 early this year after the Infosys board gave its blessings to his ambitious $20 billion revenue target by 2020 with gross margins of 30%.

Sikka said the company's strategy of bringing in automation and innovation is showing results in helping mine more business from existing clients while getting into new deals from large global customers.

"I am proud of our company’s achievements in my first fiscal year as CEO of Infosys. At the same time, I am humbled by the task that is still in front of us," said Sikka in a statement.  "And yet despite these heartening results, they are still based on metrics of the past, of the way the industry has been. The world of our future looks entirely different – it is a world that is being fundamentally reshaped by digital technologies, and it is our endeavor to create great value for every business through solutions built on our AI technology and open, cloud platforms, to have Infoscions amplified by intelligent technology, to bring purposeful innovation to life, and in that sense, we are still very much at the beginning of this journey.”

Infosys said it added 89 clients to take its tally to 1,092. 

“Employee attrition reduced further in Q4, and is reflective of increased engagement with our people all through the year, and our steps to make Infosys an exciting place for the world’s best talent. We continue to reimagine our internal processes to increase organizational agility.” said U B Pravin Rao, COO. “The momentum of large deal wins continued this quarter and bookings were strong.” 

“Our growth trajectory improved in FY16 and we navigated the external business environment well. We will continue  to  focus  on  leveraging  operational  efficiency  levers for  consistent  profitable  growth.” said  MD Ranganath,  CFO of the IT major.