IT software services company Infosys reported better than expected results, posting a 13% increase in third-quarter profit, beating estimates, helped by improved outsourcing business from its Western clients.
Infosys clocked₹₹3,250 crore profit on sales of ₹13, 796 crore for the third quarter ended 31 December 2014, helped by its "renew and new" strategy. The company's net profit was ₹ 2,875 crore in the corresponding period a year ago.
Analysts were expecting ₹3,153 crore net profit, according to Thomson Reuters I/B/E/S.
Infosys maintained its annual sales growth guidance at 7-9 per cent.
The company won 59 new clients in the December quarter.
Infosys also announced 100 per cent bonus payout for employees for the quarter.
"We have made 100% variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters," said U. B. Pravin Rao, Infosys chief operating officer, reports NDTV.
It has been losing market share amidst high staff attrition rates over the last few quarters, and seeks to increase growth by focusing on high-margin services including artificial intelligence and automation, said Reuters.
"We have covered over 9,000 employees across the company with design thinking training; more than 400 of these are at senior levels," said Vishal Sikka, CEO of Infosys.
Analysts expect most IT firms to report weak numbers for the December quarter, hurt by the strength of the US dollar, impacting earnings in other currencies like the UK pound, euro and the Australian dollar. The December quarter is also seen to be weak as a result of holidays in the West, reflecting in low revenue growth.