Infosys profit up 5%; raises sales forecast for FY'16

Infosys Ltd today reported better than expected 5 per cent rise in June quarter net profit and raised its full-year sales growth forecast as business revamp helped it win more IT contracts.
The nation's second-largest outsourcing company reported consolidated net profit of Rs 3,030 crore, or Rs 13.26 per share, in the April-June quarter as against Rs 2,886 crore, or Rs 12.63 per share in the same period a year ago.
The firm, under its first non-founder chief executive, raised sales forecast for the financial year ending March 31, 2016 to 7.2-9.2 per cent in US dollar terms. The growth projection made in April was 6.2-8.2 per cent.

Infosys added 79 clients in the April-June quarter, winning contracts from companies including UK department store chain House of Fraser and UAE-based Sharjah Islamic Bank. Six deals were worth more than USD 50 million in value each.
Infosys shares soared 11 per cent, the biggest intra-day jump in two yeas, to close at Rs 1,112.65 on the BSE.
The consolidated revenue grew 12.4 per cent in the first quarter of the current fiscal to Rs 14,354 crore, from Rs 12,770 crore in April-June of 2014-15.

"Our efforts in redesigning our clients' experience and our widespread adoption of innovation, both in grassroots and breakthroughs, are starting to bear fruit in large deal wins and in the growth of large clients," Infosys CEO and Managing Director Vishal Sikka said.

Dipen Shah, Head of Private Client Group Research at Kotak Securities said Infosys' results beat its estimates on the revenue front.
"The highlight of the results was the strong constant currency revenue growth of 4.4 per cent, led by volume growth of 5.4 per cent. The volume growth was the best in the past 19 quarters," he said.