India's second largest IT services exporter Infosys on Friday delivered mixed set of earnings after it posted results for the month October-December quarter with its profit rising 2.8 percent sequentially to Rs. 3,708.
The company lowered its full year dollar as well as rupee revenue guidance. Rupee revenue during the quarter declined 0.2 percent to Rs. 17,273 crore and dollar revenue also slipped 1.4 percent to USD 2,531 million compared with previous quarter, with volume growth of 0.2 percent.
The dollar revenue growth in constant currency was down 0.3 percent QoQ. Its dollar revenue fell for first time in last seven quarters due to RBS deal cancellation and seasonal weakness.
"Beyond the quarterly numbers, we continue to focus sharply on the execution of strategy, as reflected in the growing embrace of AI-based automation, growth in new software-led business, delivering innovation, both incremental and breakthrough and fostering a learning-led culture," said CEO and MD, Vishal Sikka in the company filing.
The IT major has tightened its constant currency revenue guidance for third time, to 8.4-8.8 percent.
Its upper end of revenue guidance reduced to 8.8 percent from nine percent but lower end of guidance raised to 8.4 percent from 8 percent.
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Retail, consumer packaged goods and logistics segment also reported degrowth of 1.5 percent QoQ and 0.4 percent in constant currency, and energy, utilities, communication and services business slipped 2.1 percent and 0.8 percent in constant currency.
However, Sikka said manufacturing was weak due to lower billing days, which would bounce back in Q4 while retail continued to be volatile and energy was relatively soft.
He expects most sectors to bounce back next year barring energy. He feels downward steady pricing pressure is expected to remain, but he optimistic on Q4 and very optimistic about BFSI segment growth.
Sikka said the company was working hard towards achieving USD 20 billion revenue and 30 percent margin levels by 2020. From a geography perspective, North America business declined by 0.6 percent both sequentially and in constant currency while Europe revenue slipped by 2.5 percent sequentially but grew by one percent in constant currency.
Revenue contribution from its top 10 clients reduced to 20.1 percent in December quarter from 21.8 percent in September quarter and top five clients to 12.3 percent from 13.1 percent.
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