Infosys revenue and profit rise ahead of CEO change
SAP's former technology chief Vishal Sikka will take over as CEO of Infosys on Aug. 1
IDG News Service - Indian outsourcer Infosys said its revenue and profit grew in the second quarter as the company won some large deals in the period.
Infosys said its revenue for the quarter grew 7% year on year, to $2.13 billion. Net profit grew 15% to $482 million, according to International Financial Reporting Standards (IFRS).
The company has forecast revenue growth of between 7% to 9% for its fiscal year ending March 31, 2015.
Some of the deals bagged were renewals but others were also new business, CEO S. D. Shibulal told analysts on Friday. "There is demand in the industry for good talent, and we have the talent," he said.
The company said customers' discretionary spending had improved.
Infosys, which had been lagging behind Indian peers such as Tata Consultancy Services, will have a new CEO on Aug. 1, when SAP's former technology chief Vishal Sikka will take over from Shibulal.
Analysts expect Sikka to transition the company from its dependence on contracts priced around the number of workers deployed on a job to a business based more on products and technologies that can be used to address the requirements of a number of customers. Infosys has attempted the move to "non-linear growth" in revenue for some years.
One challenge Infosys faces is to stem the departure of senior managers.
Staff attrition soared to 19.5% in the year to June 30, from 16.9% a year earlier. Employee attrition rates are worrisome and the company is taking various measures to retain good talent, COO U.B. Pravin Rao said.
The company added 879 staff in the quarter, taking the total staff at the end of the quarter to 161,284.
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All IT Industry White Papers | Webcasts