Infosys Q3 profit misses estimate
Indian IT services company Infosys Ltd raised its fullyear revenue growth forecast yesterday, but reported a largerthan-expected drop in thirdquarter profit, due to higher expenses.
The country’s secondbiggest software services exporter by market capitalisation reported a 29.6% fall in attributable profit for October-December to Rs36.09bn ($511.94mn). That compared with the Rs41.31bn average of 25 analyst estimates compiled by Refinitiv Eikon.
A year earlier, it made a profit of Rs51.29bn, helped by tax benefits from the firm’s deal with the US Internal Revenue Service, the company said in a statement.
Still, Infosys raised its revenue growth forecast for the year through March 2019 to 8.5-9% in constant currency, from 6-8% previously.
Total expenses in the quarter surged over 26% to Rs170.21bn, which included an additional depreciation and amortisation charge of $12mn and a reduction of $65mn in the carrying value for its Skava units.
The company also said it was “no longer highly probable” that the sale of its units Kallidus & Skava and Panaya would be completed by March 31, 2019.
Meanwhile, revenue from operations in the quarter rose 20.3% to Rs214bn in what is usually considered a seasonally weak period for Indian IT firms.
Infosys also approved a buyback of shares worth Rs82.60bn as part of its capital allocation policy.
On Thursday, market leader Tata Consultancy Services Ltd reported a record quarterly profit for October-December.