Infosys posts higher-than-expected profit, keeps annual sales growth outlook
Infosys posts higher-than-expected profit, keeps annual sales growth outlook

Infosys Ltd., India's second largest software services firm, which begins the quarterly earnings season, won't be doing so this quarter. Instead, it will be rival Tata Consultancy Services this time.

The company did not cite any reason for the slight delay this time, though it usually releases its results in the second week of April.

"A meeting of the Board of Directors of the company will be held on April 24, 2015, inter alia, to consider the audited financial results for the quarter and year ending March 31, 2015," the software firm said in a filing to the Bombay Stock Exchange (BSE) on Wednesday.

Tata Consultancy Services, the largest domestic IT firm, is set to start earnings season for fourth quarter on 16 April.

Analysts say that chief executive officer Vishal Sikka is seeking more time to finalize the roadmap needed to restructure into a next-generation service company.

Sikka and senior executives in Infosys are currently in the process of finalizing the strategy document that has caused the delay; Infosys wants to outline the roadmap when it declares its numbers, according to three other Infosys executives familiar with the development who asked not to be identified as they are not authorized to speak with the media, Livemint reports. 

The $8.2 billion IT services company is expected to outline new metrics to ascertain the progress of the revival strategy initiated by the new chief executive after taking charge in August 2014.

"Postponement of Infosys results might be keeping in view that Vishal Sikka, the new CEO, will get enough time to give out a direction and strategy for FY16 for Infosys, which has been struggling to match industry growth for three years,"said Ankita Somani, IT analyst with MSFL Research, to Deccan Herald.

"In addition, overall we have been getting mixed signals regarding the demand environment for IT companies. Therefore, a slight delay in result declaration may increase visibility on client budgets and project kickstarts," Ankita added.

The Bengaluru-based company recently announced an average salary hike of 6.5 per cent as it faces the highest attrition rate among domestic IT firms.

Infosys reported a revenue growth of 2.6 percent in the third quarter ending December 2014, helped by growth in all verticals and new client additions.