Infosys Q2 net up 9.8% at Rs3,398 cr

Infosys has posted a net profit of Rs3,398 crore for the quarter ended 30 September, a 9.8-per cent rise from Rs3,096 crore recorded during the same period a year ago.

During the reporting quarter, the Bangaluru-based company's revenues rose 17.2 per cent to Rs15,635 crore from the earlier Rs13,342 crore.

''We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximise their potential with technology. From automation and artificial intelligence helping to simplify and enable existing landscapes as well as build intelligent systems that help us solve our most complex emerging problems, to education and design helping us to rethink the human experience and helping uncover our most important horizons, a great services organization can truly partner with and amplify businesses,'' said Infosys chief executive officer and managing director Vishal Sikka.

''At Infosys, we are taking steps towards becoming such a services organisation, and I am encouraged by our progress. While results in any one quarter are transitory snapshots of a long journey, we do see our focused execution along our strategy starting to produce encouraging results for our clients, shareholders and Infoscions,'' he added.

The company's second quarter revenue growth was the highest in last 16 quarters (6 per cent in dollar terms and 6.9 per cent in constant currency), while it posted a 8.9 per cent in rupee terms.

The company signed large deals of total contract value of $983 million in the second quarter, while the board has declared an interim dividend of Rs 10 per share, with a record date of October 19, 2015.

''We had strong all-round growth during the quarter driven by recent initiatives around service differentiation, improvement in client mining and higher focus on winning large deals,'' said U B Pravin Rao, chief operating officer. ''Increase in revenue productivity was significant, volume growth was robust, client metrics and utilisation improved while attrition remained stable''.

"Infosys Q2 results today foreground the overwhelming importance of market sentiment rather than the gallant efforts of India's erstwhile IT superhero trying to make a brave comeback. Hard facts continue to reassure how the company has reinvented itself under new leadership yet share prices fell over 2.5 per cent this morning. Unfortunately the path to this reinvention involves investments that do not have the immediate payback the industry has earlier been accustomed to,'' said Sanjoy Sen, Doctoral Research Scholar, Aston Business School, UK.

The company has provided a revenue guidance of 10-12 per cent in constant currency for FY16, and 13.1-15.1 per cent in rupee terms.