Infosys Q4 net profit grows 3.8% to Rs. 3,597 crore; clientele touches 1092

Infosys, India's information technology bellwether, announced its results for the fourth quarter, ending March 31, 2016.

The company has outperformed market expectations for the fourth time and its net profit for the quarter rose by 3.8 percent to Rs. 3,597 crore over the previous one. Its revenue, in the same period, witnessed a 4.1 percent rally to Rs.16,550 crore.

The attrition rate for this quarter stood at 17.3 percent over 18.1 percent in the quarter ending December 2015.

On a year on year basis, the information technology exporter reported a consolidated profit rise of 9.4 percent to Rs. 13,491 crore over the same quarter the previous year. Its revenue grew by 17.1 percent to Rs.62, 441 crore in a year.

The company expects a growth of 11.5 to 13.5 percent in constant currency and 12.7 to 14.7 percent in Indian rupees, when it comes to the much awaited revenue guidance projection for the year ahead, that is FY 2016-17. 

The Board recommended final dividend of Rs.14.25 per equity share for the financial year 2016.

Reminiscing on the past year as his "first fiscal as CEO of Infosys," Vishal Sikka said he was proud of the company's achievement. "At the same time, I am humbled by the task that is still in front of us," he added.

Infosys said the advances made in its strategy to deliver automation and innovation in its offerings had helped the company in the fourth-quarter to create more depth in existing client relationships, and win more deals, specifically large ones in new types of strategic projects. It mentioned North America based ConAgra Foods and Welsh Water as the new additions to its clientele.

In a statement, Infosys noted that it had 89 clients in the fourth-quarter, 14 more than the clients that existed at the end of December. Also, the company did not add any new clients in the $200 million plus category. Its top 10 client contribution was down 21.8 percent as against the 22.6 percent the previous quarter.

Infosys clientele now add up to 1092 as against 950 that existed a year ago.

In the Q4 period, the IT major's revenue from the North America was down 0.6 percent, while the revenue from Europe, India and the rest of the world saw minimal growth.

"Our growth trajectory improved in FY 16 and we navigated the external business environment well. We will continue to focus on leveraging operational efficiency levers for consistent profitable growth," said M.D. Ranganath, chief financial officer.

Infosys also announced the appointment of Mohit Joshi, Ravi Kumar S and Sandeep Dadlani as the presidents of the company starting from the new fiscal.