Bengaluru, Jan 13 (IANS) Software major Infosys on Friday lowered dollar guidance again for the fiscal 2016-17 on declining revenue in the third quarter (October-December) unlike its peer TCS, which posted robust growth for the same quarter.
"Consolidated revenue growth for the fiscal year ending March 31, 2017 would be 7.2-7.6 per cent as against 8-9 per cent projected in October in dollar term," said the company in a regulatory filing to the BSE.
In constant currency, the revenue outlook for F 2017 is 8.4-8.8 per cent under the International Financial Reporting Standard (IFRS).
With the rupee weakening to Rs 67.93 per dollar in December from Rs 66.62 in September and Rs 67.53 in June, the revised annual guidance will translates to 7.9-8.3 per cent for FY 2017 at the end of July-September and April-June quarters.
Under the Indian accounting standard, the consolidated revenue growth in rupee term would, however, be 8.4-8.8 per cent as against 8-9 per cent in constant currency.
"The revised rupee guidance will translate to 10-10.4 per cent on December 31 dollar rate, 11.3-11.7 per cent on September 30 dollar rate and 11.6-12 per cent on June 30 Adollar rate," noted the filing.
The lower outlook hit the company's blue chip scrip on the BSE, with its Rs 5 per share losing Rs 24.90 or 2.49 per cent to end at Rs 975.15 as against Thursday's closing price of Rs 1,000.05, after opening at Rs 1,026.25, trading high at Rs 1,045 and plunging to Rs 964 after the Q3 results were declared before the morning session.
Revenue for the quarter under review (Q3) declined 0.2 per cent sequentially to Rs 17,273 crore from Rs 17,310 crore in second quarter (July-September) but rose 8.6 per cent annually from Rs 15,902 crore in same period year ago under the Indian accounting standard.
Net profit, however, grew 2.8 per cent sequentially to Rs 3,708 crore for Q3 from Rs 3,606 crore in second quarter and 7 per cent annually from Rs 3,465 crore in like period year ago.
Under the IFRS, revenue growth declined 1.4 per cent sequentially to $2,551 million for Q3 from $2,587 million in second quarter but rose 6 per cent annually from $2,407 million in like period year ago.
Net income, however, grew 1.5 per cent sequentially to $547 million in Q3 from $539 million in second quarter and 4.4 per cent annually from $524 million in same period year ago.
"Taking into account seasonal and other headwinds for the quarter, our revenue performance was in line with our expectations," said Chief Executive Vishal Sikka in a statement later.
Operating profit too declined 0.4 per cent sequentially to $640 million in Q3 from $644 million in Q2 but grew 6.8 per cent annually from $599 million in like period year ago in dollar, though marginally up (0.6 per cent) in rupee term to Rs 4,334 crore in Q3 from Rs 4,309 crore in Q2 but 9.5 per cent up from Rs 3,909 crore in same period year ago.
The IT major is focused on embracing AI-(Artificial Intelligence) based automation, growth in new software-led business, delivering innovation and fostering a learning-led culture.
"Our annual client survey results show highest customer satisfaction since 2005, adoption of zero distance and lowered attrition, especially amongst top performers, recalled Sikka.
The company added 77 clients, including two in the $75-million plus revenue category during the quarter, as against 78 quarter ago and 75 year ago, taking the total to 1,152 by end of Q3, as against 1,136 quarter ago and 1,035 year ago.
"In a seasonally soft quarter, our utilisation has remained healthy. Our efforts to improve employee engagement and experience resulted in a reduction in attrition," said Chief Operating Officer U.B. Pravin Rao in the statement.
Liquid assets, including cash and investments increased to Rs.35,697 crore in the quarter from Rs.35,640 crore quarter and Rs.31,526 crore year ago.
"Cash generation during the quarter was strong. Focus on operational efficiencies has enabled us to keep operating margins at similar levels during the quarter as in the same period year ago," said Chief Financial Officer M.D. Ranganath.
In a related development, the company appointed global delivery organisation head S. Ravikumar as Deputy Chief Operating Officer and will report to Rao.
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.