Infy beats estimates, but lowers forecast

TECH TACK Net up 9.8%; shares tank 4% after firm cuts earnings guidance, CFO Bansal quits; Ranganath to succeed

BENGALURU: Software giant Infosys on Monday reported a 9.8% year-on-year rise in quarterly net profit to `3,398 crore during July-September, from `3,030 a year ago, beating expectations, on the back of a weak rupee and robust demand from the US. The country’s secondlargest IT services exporter, however, lowered its dollar earnings forecast for the current fiscal year from 7.2-9.2% to 6.4-8.4%.

In constant currency terms, it retained its earlier forecast of 10-12% revenue growth.

The second-quarter net profit topped a Bloomberg survey of 14 analysts which forecast a net profit of `3,280 crore.

Total revenue grew 17.2% year-on-year to `15,635 crore from `13,342 crore a year earlier.

“We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximise their potential with technology,” CEO Vishal Sikka said.

“From automation and artificial intelligence helping to simplify and enable existing landscapes as well as build intelligent systems that help us solve our most complex emerging problems, to education and design helping us to rethink the human experience and helping uncover our horizons, a great services organisation can truly partner with and amplify businesses. At Infosys, we are taking steps towards becoming such a services organisation, and I am encouraged by our progress.”

The company’s shares, however, fell 3.9% on the BSE after the company announced that its chief financial officer, Rajiv Bansal, was stepping down.

“Bansal has informed the company of his intention to resign. He will be replaced by MD Ranganath at the close of business on Monday,” the company said.

Bansal, who has also been the executive vice-president, will however continue as an advisor to CEO Vishal Sikka and the Infosys Board till December 31.

Explaining the reason for Bansal’s exit, Sikka said he has nothing “juicy to offer” and dismissed it as business usual for both Bansal and Infosys. “He (Bansal) has had a great run and he wants to do something else.”

Bansal’s future plans were not immediately clear.

Ranganath is a 15-year veteran with Infosys. He is currently executive vice-president and head of strategic operations, responsible for planning, risk management, mergers & acquisitions and corporate marketing.