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See good demand environment across US, Europe: Infosys CEO

Press Trust of India  |  Bengaluru 

India's second largest company today said it sees a "good" demand environment in large markets such as the US and Europe, but stuck to the previously-set revenue growth target of 6-8 per cent for the full financial year.

"Overall, we see a good demand environment across the US, and In terms of the sector demand, we see strength in energy, utilities, retail, insurance and manufacturing," CEO, told reporters.

Parekh -- a former who, earlier this year, was brought in as the to restore growth and order at the Bengaluru based IT firm after a public spat between key founders and the - said has clinched USD 1.1 billion of large deals during the June quarter of which 40 per cent were in

Infosys has maintained revenue growth forecast at 6-8 per cent in constant currency terms for fiscal 2019, and also reiterated the operating margin guidance of 22-24 per cent for 2018-19. For June quarter, Infosys has delivered operating margins at 23.7 per cent,hitting the upper quartile of the guidance band.

Asked why the company had not raised its revenue targets for the full year despite expressing optimism about the demand for its services, Parekh said the commentary on the demand environment was based on dialogue with clients on which pointed towards a stable to good outlook.

"Guidance discussion is a different discussion. We have good and a solid start with the first quarter and we will now execute on the next three quarters....we will see how it progresses, and how it plays out. We don't have a real need to make any adjustments (in full year growth outlook)," said Parekh.

Capping the second quarter of earnings scorecard under Parekh's watch, Infosys today reported 3.7 per cent growth in consolidated net profit at Rs 3,612 crore for quarter ended June 30, 2018. Revenues from operations grew 12 per cent to Rs 19,128 crore in the April-June quarter compared to Rs 17,078 crore in the year-ago period.

Infosys board has appointed as an independent for a period of three years, based on the recommendation of the nomination and remuneration committee of the board.

In dollar terms, the net profit declined 1.2 per cent year-on-year to USD 534 million for the quarter, including impact of USD 39 million on account of reduction in the fair value of assets held for sale.

Revenues came in at USD 2,831 million for June quarter, translating into a year-on-year growth of 6.8 per cent and sequential rise of 0.9 per cent.

Digital revenues stood at USD 803 million (28.4 per cent of total revenues), displaying a sequential growth of 8 per cent and year-on-year jump of over 25 in constant currency terms, Infosys said.

"During the three months ended June 30, 2018, on remeasurement, including consideration of progress in negotiations on offers from prospective buyers for Panaya, the company has recorded a reduction in the fair value of disposal group held for sale amounting to USD 39 million in respect of

"Consequently, profit for the three months ended June 30, 2018 has decreased by USD 39 million resulting in a decrease in basic earnings per equity share by USD 0.02 for the quarter..." the company explained in a statement.

Infosys' localisation efforts in the US are going in full steam ahead, including a campus in the US state of Indiana, Parekh said.

"In localisation programme, we have launched a new 75 acre campus in US and are now planning for other locations in the US, six in and three in I feel we have a stable start to the year and are executing on a strategy and a three-year transformation programme," Parekh added.

Asked about the recent anonymous whistleblower complaint questioning delay in filing of Form 20F with US SEC, Parekh said, "All whistleblower complaints are being addressed by the company and this also is being addressed. At this stage, we will not make any other statement on any specific whistleblower complaint...".

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

First Published: Fri, July 13 2018. 20:15 IST
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