In­fosys Q3 profit misses es­ti­mate

Gulf Times Business - - BUSINESS -

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.

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