Infosys Q3 net profit rises 21.4% to Rs2,875 crore

Infosys today reported a net profit of Rs2,875 crore for the quarter ended 31 December 2013 – a 19.4 per cent growth over the previous quarter and a 21.35 per cent growth over the comparable quarter of the previous year.

Consolidated revenue during the quarter rose 25 per cent to Rs13,026 crore from Rs10,424 crore in the year-ago quarter. Revenues were up 0.5 per cent from the previous quarter.

Earnings per share (EPS) stood at Rs50.32 for the quarter ended 31 December 2013 – a growth of 19.5 per cent over the previous quarter and a year-on-year growth of 21.3 per cent.

''During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations,'' said Rajiv Bansal, chief financial officer. ''We continue to remain focused on making investments necessary to secure and grow our future.''

The company expects consolidated revenue to grow 11.5-12 per cent in dollar terms and 24.4-24.9 per cent in rupee terms in the current financial year ending 31 March 2014.

''The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives,'' said S D Shibulal, CEO and managing director.

''We continue to differentiate ourselves to seize growth opportunities. The recent changes in organisational structure will enable us to strengthen client relationships and increase market share.''

Earlier this month, Infosys saw an exodus of top level executives that resulted in restructuring its business under two divisions headed by B G Srinivas and U B Pravin Rao, possible contenders for the CEO's post after S D Shibulal retires (See: Infosys appoints B G Srinivas and U B Pravin Rao as presidents). 

The company will dissolve its top decision-making body, the Executive Council, with effect from 1 April 2014.

Infosys had Rs27,440 crore in liquid assets, including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds as of 31 December 2013 against Rs26,907 crore as of 30 September 2013.

Infosys and its subsidiaries added 54 clients during the quarter.

Infosys and its subsidiaries added a total of 6,682 employees during the quarter ended 31 December 2013. Total employee strength stood at 158,404 at the end of December 2013.