Infosys misses profit estimates as costs surge

Spread the love

[ad_1]

India’s Infosys Ltd on Sunday reported June-quarter profit that missed estimates, hurt by higher employee expenses, but the IT services company raised its annual revenue outlook, citing a strong demand outlook.

Infosys’ larger IT rival Tata Consultancy Services and also smaller rivals such as HCL Technologies and Wipro have seen their margins erode as they battle a higher sector-wide talent churn and try to retain employees.

Overall expenses surged more than 29%, while operating margins for Infosys for the June quarter came in at 20.1%, down 3.6% year-on-year. The company also retained its operating margin guidance for full year at 21%-23%.

The company was making investments in talent through hiring and competitive compensation revisions, which will impact margins in the immediate term, Nilanjan Roy, chief financial officer, Infosys said in a statement.

However, Bengaluru-based Infosys expects revenue growth of 14%-16% for the financial year to March, slightly up from its view of 13%-15% forecast in April.

“We see good volume growth, good pipeline of large deals and that gives us the confidence for increasing revenue guidance,” chief executive officer Salil Parekh said in a media call.

Infosys saw its large deal signings dropping about 35% to $1.7 billion rupees, while gross addition of clients during the quarter dropped to 106 from 113 a year ago.

But chief executive Parekh said the company was seeing good traction with large clients.

Consolidated net profit for Infosys rose 3.2% 53.60 billion rupees ($12.5 million), but missed analysts estimates of 56.26 billion rupees, according to Refinitiv data.

The April-June quarterly earnings reports have started on a weaker note for Indian IT services companies, with TCS, HCL Technologies and Wipro also missing their first-quarter profit estimates.

Revenue from operations for Infosys jumped 24% to 344.70 billion rupees.

[ad_2]

Source link

Journalist Details

Featured Times
Tags:

5 thoughts on “Infosys misses profit estimates as costs surge

  1. Empirical studies using qualitative or mixed research methods Studies focusing on breast cancer patients or support groups encompassing breast cancer patients can include other types of patients Studies related to information needs can women take propecia

Leave a Reply

Your email address will not be published. Required fields are marked *