Menu
Infosys revenue and profit rise ahead of CEO change

Infosys revenue and profit rise ahead of CEO change

SAP's former technology chief Vishal Sikka will take over as CEO of Infosys on Aug. 1

Indian outsourcer Infosys said its revenue and profit grew in the second quarter as the company won some large deals in the period.

Infosys said its revenue for the quarter grew 7 percent year on year, to US$2.13 billion. Net profit grew 15 percent to $482 million, according to International Financial Reporting Standards (IFRS).

The company has forecast revenue growth of between 7 to 9 percent for its fiscal year ending March 31, 2015.

Some of the deals bagged were renewals but others were also new business, CEO S. D. Shibulal told analysts on Friday. "There is demand in the industry for good talent, and we have the talent," he said.

The company said customers' discretionary spending had improved.

Infosys, which had been lagging behind Indian peers such as Tata Consultancy Services, will have a new CEO on Aug. 1, when SAP's former technology chief Vishal Sikka will take over from Shibulal.

Analysts expect Sikka to transition the company from its dependence on contracts priced around the number of workers deployed on a job to a business based more on products and technologies that can be used to address the requirements of a number of customers. Infosys has attempted the move to "non-linear growth" in revenue for some years.

One challenge Infosys faces is to stem the departure of senior managers.

Staff attrition soared to 19.5 percent in the year to June 30, from 16.9 percent a year earlier. Employee attrition rates are worrisome and the company is taking various measures to retain good talent, COO U.B. Pravin Rao said.

The company added 879 staff in the quarter, taking the total staff at the end of the quarter to 161,284.

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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingbusiness issuesservicesfinancial resultsoffshoringinfosys

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments