Infosys share prices were down 1.52 percent at Rs. 1020.75 apiece after the company released details of analysts' meet on Friday. The company's client growth after the loss of RBS contract over Brexit impact, digital technology adoption and re-skilling employees were among the focus areas in the meet.
The IT major recorded 10.9 percent year-on-year (YoY) growth in dollar terms. Sequentially, the products and platforms segment was the largest contributor, at 7.1 percent, to the overall rise of revenues, while the core IT business contribution came at 3.6 percent. Consulting and packaging revenues fell by 1 percent month-on-month.
After the first quarter earnings, CEO Vishal Sikka had cited consulting, package implementation and Finacle as areas that affected the overall performance of the company last quarter.
Infosys had lowered its revenue guidance to 10.8-12.3 percent in constant currency from the earlier 11.8-13.8 percent on account of 4.47 percent sequential decline in net profit. In dollar terms too, net profit posted a 3.7 percent decline compared to March 2016 quarter.
Infosys recorded higher top account growth and deal wins for the quarter ended June 2016. The IT services exporter said revenues from the top 10 clients grew 9.2 percent YoY during the first quarter, while the number of $100 million plus deals won increased to 17 from 14 in June 2015. Total contract value at the end of April-June quarter stood at $809 million, up 17.5 percent from the year-ago period.
At the end of financial year 2015-16, the company had added 325 new clients, taking the total client count to 1092. The Bengaluru-based company had attained 97 percent repeat business during the last fiscal.
The company witnessed 'softness' after Britain exited the European Union, a top executive said in the analyst meet. European market contributed 23 percent of the company's outsourcing business in June 20, 2016 quarter.
The company which recently denied reports of terminating 500 employees, saw attrition at 21 percent, the highest in the previous three quarters, while attrition among the high performers came down from 13.4 percent to 11.2 percent quarter-on-quarter.
In a bid to improve productivity, the IT firm will carry forward the policy of differentiating between performers at various levels and will focus on leadership development among its workforce. The IT services firm implemented Infosys Learning Platform (ILP), under which entry-level employees will be trained in minimum three different languages. Employees also have an opportunity to explore internal job profiles through the Compass app, which gives workers more control over their career path.
Among its plans for upcoming quarters include digital tutor on cloud and next-generation knowledge management platform. The company will focus on honing skills in design thinking and digital technologies. As of 2015, Infosys had trained 39,000 employees under its design thinking program.
With the acquisition of eCommerce service provider Skava and automation start-up Panaya last year, Infosys aims to fill the gap between traditional IT and digital services through its offerings of Robotic Process Automation solutions. The IT service provider also unveiled in-house artificial intelligence platform Mana in April this year. The platform has analysed over 3 lakh use cases, according to the company's statement.