Infosys net profit jumps 38% to Rs. 5129 cr

Infosys announced its first results under new CEO Salil Parekh

Infosys announced its first results under new CEO Salil Parekh

Net profit was up 37.7 percent at Rs 5,129 crore due to lower tax expenses (see chart).

The Indian MNC earlier reported a net profit of Dollars 796 million, thus registering a quarterly growth of 37.6 percent, and YoY growth of 45.4 percent.

Analysts on average expected the IT firm to post a profit of 37.10 billion rupees, Thomson Reuters data showed. Revenue grew 3% to 177.94 billion rupees.

Commenting on the Q3 earnings, Salil Parekh, CEO and MD of Infosys, said: "It is a privilege for me to be appointed as the CEO & MD of Infosys, helping our clients navigate the digital future and employees build new skills and capabilities".

Earlier this week, Infosys had signed an Advance Pricing Agreement (APA) with the U.S. revenue department, which will result in reversal of tax provisions of about $225 million.

The Mumbai- and New York-listed company also maintained its dollar revenue growth outlook for this fiscal year between 5.5% and 6.5%, barring currency fluctuations. Mr. Balakrishnan, who is known to be a supporter of Murthy, said that the sarcastic communication to the stock exchanges who is blaming Infosys Co-Founder Mr. N R Narayana Murthy for all the board's gaps was unique.

Where Infosys retained its guidance for the year, signaling stability in business environment for the company, TCS expects a rebound on the back of strong growth in key sectors, like retail, and in major markets, like the US.

An employee of the company for 26 years, Murthy was responsible for the global Energy, Utilities, Telecommunications and Services business unit, including setting the vision, creating and implementing strategy, and driving growth.

On Friday, the company said Rajesh Murthy, president and a 26-year-long veteran, stepped down, effective January 31, citing personal reasons. Parekh added that the entire exercise would be concluded by April when he lays out the "strategic priorities" for the company going forward.

Just like TCS, Infosys Q3 profit and revenue numbers were in line with the estimates.

Sequentially too, revenue growth was flat (1 per cent) from Rs 17,657 crore quarter ago.

Pravin Rao, COO of Infosys said, "During the quarter, we provided compensation increases and higher variable payouts to our employees".

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