Menu
India's Infosys posts strong revenue, profit growth

India's Infosys posts strong revenue, profit growth

The outsourcer brought back its first CEO to help revive the company

Indian outsourcer Infosys reported revenue and profit growth in the first quarter, but is still troubled by strong staff attrition and key management changes.

Revenue in the quarter was US$2 billion, an increase of almost 8 percent over the same quarter last year, according to IFRS (International Financial Reporting Standards). Net profit grew by 9.7 percent to $487 million.

The company's year-on-year revenue growth is far below that of the rest of the industry, said Sudin Apte, CEO and research director at analyst firm Offshore Insights. He pointed out that the company's revenue had declined from the previous quarter.

Infosys' CEO and managing director, S.D. Shibulal said in a webcast that the quarter had been disappointing. The company faced a slow-down in market segments such as retail, and even cancellations in some business segments.

For its fiscal year ending March 31, Infosys reported revenue of $8.2 billion, up 11.5 percent year on year, while net profit grew 1.5 percent to $1.7 billion. The company has forecast revenue growth of up to 9 percent for its current fiscal year.

Infosys brought back N.R. Narayana Murthy, its co-founder and first CEO, as executive chairman in June last year to turn around the company, which has been lagging behind most of its key competitors.

But the company also saw a number of key executives leave. "The frequent changes have generated uncertainty in the organization which is now affecting clients as well," Apte said.

A high staff attrition rate of 18.7 percent is also worrying customers who won't like to see one in five people working on their projects leave the company, he added.

The next challenge for the company is to find a successor to Shibulal who intends to leave before January next year.

Infosys added 50 clients during the quarter and 238 during the year. The company had 160,405 employees at the end of the quarter, after adding 2001 staff in the quarter.

North America is the largest market for Infosys, accounting for nearly 60 percent of revenue, followed by Europe with over 25 percent revenue share.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesservicesoffshoringoutsourcinginfosysfinancial results

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments