Infosys’ (NYSE: INFY) revenue rose 6.0% year over year to $2.55 billion in US dollars in its fiscal third quarter ended Dec. 31. The increase was 7.3% in constant currency. Net profit also rose at the global IT services and outsourcing provider.
However, the company again revised its consolidated revenue guidance for the fiscal year ending March 31, 2017. It now expects revenue growth of between 8.4% and 8.8% in constant currency, narrowed from an outlook of 8.0% to 9.0% provided in its second-quarter earnings report.
| (US$ millions) | Quarter ended Dec. 31, 2016 | Quarter ended Dec. 31, 2015 | % growth | % growth in constant currency |
| Revenue | $2,551 | $2,407 | 6.0% | 7.3% |
| Gross profit | $950 | $895 | 6.1% | |
| Gross margin percentage | 37.2% | 37.2% | ||
| Net profit | $547 | $524 | 4.4% |
Reuters reported Infosys pared its full-year revenue growth outlook as it fights uncertainties in its biggest markets that could curb client spending on technology. Infosys and its rivals in India’s $150 billion software services sector have struggled in recent quarters as major clients in the United States and Europe, their biggest markets, held back discretionary spending, awaiting clarity on policy shifts under US President-elect Donald Trump and possible changes following the UK’s Brexit, according to Reuters.
Infosys also appointed Ravikumar S. as deputy chief operating officer reporting to COO Pravin Rao, effective immediately. In addition to his current responsibility of heading the global delivery organization, Ravikumar S. will oversee certain strategic business enabling functions and will be based in India. Additionally, Infosys’ board of directors appointed Deloitte as the independent registered public accounting firm to audit the annual financial statements of the company to be included in the annual report filed with the US Securities and Exchange Commission for the year ending March 31, 2018.
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“Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations,” said CEO and Managing Director Vishal Sikka. “Beyond the quarterly numbers, we continue to focus sharply on the execution of our strategy, as reflected in the growing embrace of AI-based automation, growth in our new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture.”
