Infosys lowers guidance again as third quarter revenue dips

Bengaluru, Jan 13 (IANS) Software major Infosys on Friday lowered dollar guidance again for the fiscal 2016-17 on declining revenue in the third quarter (October-December) unlike its peer TCS, which posted robust growth for the same quarter.

“Consolidated revenue growth for the fiscal year ending March 31, 2017 would be 7.2-7.6 per cent as against 8-9 per cent projected in October in dollar term,” said the company in a regulatory filing to the BSE.

In constant currency, the revenue outlook for FY 2017 is 8.4-8.8 per cent under the International Financial Reporting Standard (IFRS).

With the rupee weakening to Rs 67.93 per dollar in December from Rs 66.62 in September and Rs 67.53 in June, the revised annual guidance will translates to 7.9-8.3 per cent for FY 2017 at the end of July-September and April-June quarters.

Under the Indian accounting standard, the consolidated revenue growth in rupee term would, however, be 8.4-8.8 per cent as against 8-9 per cent in constant currency.

“The revised rupee guidance will translate to 10-10.4 per cent on December 31 dollar rate, 11.3-11.7 per cent on September 30 dollar rate and 11.6-12 per cent on June 30 dollar rate,” noted the filing.

Revenue for the quarter under review (Q3) declined 0.2 per cent sequentially to Rs 17,273 crore from Rs 17,310 crore in second quarter (July-September) but rose 8.6 per cent annually from Rs 15,902 crore in same period year ago under the Indian accounting standard.

Net profit, however, grew 2.8 per cent sequentially to Rs 3,708 crore for Q3 from Rs 3,606 crore in second quarter and 7 per cent annually from Rs 3,465 crore in like period year ago.

Under the IFRS, revenue growth declined 1.4 per cent sequentially to $2,551 million for Q3 from $2,587 million in second quarter but rose 6 per cent annually from $2,407 million in like period year ago.

Net income, however, grew 1.5 per cent sequentially to $547 million in the third quarter from $539 million in second quarter and 4.4 per cent annually from $524 million in same period year ago.

Operating profit too declined 0.4 per cent sequentially to $640 million in the third quarter from $644 million in the second quarter but grew 6.8 per cent annually from $599 million in like period year ago in dollar, though marginally up (0.6 per cent) in rupee term to Rs.4,334 crore in the third quarter from Rs.4,309 crore in the second quarter but 9.5 per cent up from Rs 3,909 crore in same period year ago.

In contrast, TCS revenue grew 0.3 per cent sequentially to $4,387 million in the third quarter from $4,374 million in the second quarter and 5.8 per cent annually from $4,145 million in like period year ago under the IFRS.

In rupee term, TCS revenue grew 1.5 per cent sequentially to Rs29,735 crore from Rs.29,284 crore in the second quarter and Rs 27,364 crore in same period year ago.

TCS’s net profit grew 2.9 per cent sequentially to Rs 6,778 crore in the third quarter from Rs 6,586 crore in the second quarter and 10.9 per cent from Rs 6,110 crore in like period year ago in rupee term under the Indian accounting norms.

–IANS

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