Infosys lowers rupee guidance to 2-3 per cent, Parekh says rising opportunity for Stronger Infy

Last Updated: Fri, Jan 12, 2018 19:49 hrs
Salil Parekh, new CEO of Infosys (Image Courtesy: YouTube)

Bengaluru: Software major Infosys on Friday lowered its consolidated annual revenue guidance to 2.1-3.1 per cent from 3-4 per cent in rupee terms but maintained in dollars at 6.5-7.5 per cent for fiscal 2017-18. In a regulatory filing on the BSE, the city-based firm said revenue growth was expected to be 2.1-3.1 per cent annually at the December 31 exchange rate of Rs 63.88 per US dollar.

"The annual revenue is expected to grow 5.5-6.5 per cent in constancy currency (CC) in rupee and dollar terms but 2.1-3-1 per cent, with the dollar at Rs 63.88 per dollar," said the company.

Under the International Financial Reporting Standard (IFRS), the company said the annual revenue growth in dollar terms would be 6.5-7.5 per cent with the exchange rate of Rs 63.88 per dollar and same (5.5-6.5 per cent) in CC.

The company posted consolidated revenue of $10.2 billion or Rs 68,484 crore for fiscal 2016-17. The revised outlook in rupee terms is lower than 3-4 per cent given on October 24 when the dollar was Rs 65.29 on September 30 and 3-5 per cent on July 14 with dollar at Rs 64.58 on June 30.

Post the release of the results for the third quarter (Q3) of the current fiscal, Infosys CEO Salil Parekh on Friday highlighted the presence of a number of opportunities to builder a "stronger Infosys."

Addressing the first press conference post his appointment as CEO of the IT major, Parekh said the ongoing digital disruption has created a new opportunity for the company."While clients are facing digital disruption, we see an opportunity rising for us. We have the trust of around 1,100 clients and over 200,000 employees who are happy to work with us. The business is growing well, there's high cash flow. With this renewed energy and attention, we have an opportunity to build a stronger Infosys," he said.

Highlighting the emergence of technology in terms of Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Salil said Infosys is progressing towards stability and is "ready to serve clients in the new areas of demand."

Salil further noted that he is reviewing contracts with clients and looking to engage more with the people, ahead of a new strategy in April.

"The priority, at this minute, is to connect with people and clients," he said.

Adding to this, the company CFO Ranganath D Mavinakere opined that the growth reported is resilient on many dimensions, with improved operating margins as a result of broad-based improvement in operational efficiency.

The Indian MNC earlier reported a net profit of USD 796 million, thus registering a quarterly growth of 37.6 percent, and YoY growth of 45.4 percent. Revenue reported was USD 2,755 million, thus reporting quarterly growth of one percent in reported terms. Further, revenue guidance in constant currency was retained at 5.5-6.5 percent.

Infosys currently possesses a workforce of 201,691 employees as on December 31, 2017, with gross addition of 12,622 employees in Q3 of FY18. The report also stated that 79 new clients were added in Q3 of FY18, taking the total client count to 1191.

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