Profits rise 3.3% for India’s Infosys, above expectations

MUMBAI:

Indian software giant Infosys on Tuesday reported a 3.3 percent year- on- year rise in profits for the second quarter, in its first earnings results since its CEO quit amid a boardroom coup. to September 30 rose to 37.26 billion rupees ($573 million) from 36.06 billion rupees for the same period a year earlier, the

A Bloomberg survey of analysts had projected the company’s earnings at 35.3 billion rupees.

Infosys veteran and interim chief executive UB Pravin Rao said the company responded quickly to board and management changes, “minimising any negative impact to the business”.

Infosys share prices plunged in August after chief executive Vishal Sikka suddenly quit the software giant amid boardroom tensions.

Sikka had come under fire from some founders over his style of corporate governance and salary increases for top executives.

Infosys co- founder Nandan Nilekani was quickly named non- executive chairman to calm investor unrest and steady the share price, but the company remains without a CEO.

In the first set of earnings since the unrest, Infosys also announced that revenue for the quarter rose to 175.67 billion rupees.

It also downgraded growth projections in US dollar terms for the fiscal year 2017/ 18 to 5.5- 6.5 percent from 6.5- 8.5 percent.

India became a back office to the world in the early 2000s as companies subcontracted work to firms such as Infosys, taking advantage of the country’s skilled English- speaking workforce.

India’s $ 150- billion IT sector has long been one of its flagship industries but it is facing upheaval in the face of automation, a failure to keep up with new technologies and US President Donald Trump’s threat to clamp down on visas.

Shares of Infosys fell by 1.37 percent to 926.75 rupees on the Bombay Stock Exchange.