Infosys Posts Rise In Q2 Profit, Lowers Revenue Forecast
Indian company Infosys Ltd ADR (NYSE: INFY) reported a rise in its profit for the second quarter. However, the company lowered its revenue forecast for fiscal year 2016.
The Bengaluru, India-based company posted a quarterly net profit of 33.98 billion rupees ($525 million), versus a year-ago profit of 30.96 billion rupees. However, analysts were projecting a profit of 32.89 billion rupees. Under International Financial Reporting Standards, the company's profit climbed 1.6 percent year-over-year to $519 million, while EPS rose to $0.23. Revenue surged 8.7 percent year-over-year to $2,392 million.
Infosys now expects dollar revenue growth of 6.4 percent to 8.4 percent, versus its earlier forecast for 7.2 percent to 9.2 percent growth. However, the outlook was unchanged on a constant currency basis.
The company's board declared an interim dividend of $0.15 per ADS, or INR10 per share.
"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 Mr. U. B. Pravin Rao, COO. "Increase in revenue productivity was significant, volume growth was robust, client metrics and utilization improved while attrition remained stable."
The company announced the resignation of its CFO, Rajiv Bansal.
Infosys shares fell 0.05 percent to close at $19.15 on Friday.
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