Infosys ups its revenue growth forecast for the fiscal
Infosys on Wednesday upped its revenue growth forecast for the fiscal, reflecting growth momentum on the back of robust deal wins and a favourable pipeline on higher tech spending even as profit for the third quarter ended December 31, 2021 was largely in line with estimates.
The company now expects revenues for the year ended March 31, 2022 to grow 19.5-20 per cent in constant currency terms up from 16.5-17.5 per cent estimated earlier.
In a seasonally lean period for the sector, Infosys posted a net profit of Rs 5,809 crore against Rs 5,197 crore a year-ago — a rise of 11.8 per cent.
Analysts were expecting the company to report net profits in the region of Rs 5,700-5,900 crore. Revenues on the other hand were up almost 23 per cent to Rs 31,867 crore from Rs 25,927 crore a year ago.
As its clients continued to invest in digital transformation, Infosys saw its large deal wins (those above $50 million) standing at $2.53 billion in the third quarter compared with $ 2.15 billion in the preceding quarter.
Salil Parekh, CEO & MD of the company, said growth has continued to remain broad-based and clients are betting more on transforming digitally with investments in cloud, cyber-security and internet of things among others. He pointed out that the bump-up in its revenue guidance was a reflection of not only these conditions, but the positive demand environment and its execution capabilities.
“Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us,’’ he said.
However, its good performance was marred by higher employee attrition which rose to 25.5 per cent from 20.1 per cent on a sequential basis. The company however, added that this has moderated during the current quarter. It is now taking more freshers to tide over this problem and hirings in this regard will stand at 55,000 for the current fiscal.
Infosys also disclosed in a regulatory filing that it has amended the whistleblower policy, apart from the nomination and remuneration committee charter & nomination and remuneration policy.
Its whistleblower policy says that all its employees are required to report any suspected violation of any law that applies to the company and any suspected violation of the its Code of Conduct and Ethics.
``It is important that you report all suspected violations. Failure to report any reasonable belief that a violation has occurred or is occurring is itself a violation of this policy and such failure will be addressed with appropriate disciplinary action, including possible termination of employment’’, the policy said.