Fallen bellwether Infosys rises like a phoenix

Last Updated: Fri, Oct 11, 2013 06:09 hrs

The fallen bellwether is ready to fight back and reclaim its position going by the second quarter earnings report of Infosys.

Even though the company's net profit has declined both sequentially and annually by 8.4% and 11.1%, respectively, to $383 million, the top line has grown at 3.8% sequentially and 11% annually to $2.06 billion.

Under the stewardship of the returning NR Narayana Murthy, the company has aggressively returned to the bread and butter application and maintenance market in a big way.

The company has also decided to loosen purse strings and announced a special interim dividend of Rs 20 per share.

The most promising part of this quarter is the traction the company is seeing in the large deals segment, which has driven the top line to grow by 3.8% in dollar terms sequentially to $2.06 billion. This is a beat of consensus estimates as the market was expecting the company to report a revenue growth of 3% quarter-on-quarter. 

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The company has also added five large deals which have largely contributed to the sales momentum, said SD Shibulal, CEO and managing director of Infosys.

The company along with its subsidiaries added 68 clients during the quarter and has added 2,964 employees during the quarter (gross addition of employees is at 12,168).

The company is focusing on big data and cloud which has helped drive revenue flow in the current quarter. In the second quarter, the company won over 15 new projects with clients in these segments.

The company claims it is a leader in cloud services with more than 4,500 cloud experts, 200 engagements and 35 partners.

The company is now engaging with clients to create innovative solutions around the mobile device.

In the second quarter Infosys has begun over 25 different engagements in various areas such as mobile strategy consulting, mobile field service, customer engagement, and enterprise productivity, among others.

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