Bangalore, Apr 15 (PTI) India's second largest software
exporter Infosys today reported a 25 per cent jump in its
consolidated net profit to Rs 2,992 crore for the quarter
ended March 31, 2014, helped by large deals and an uptick in
client spending.
Unveiling the March quarter numbers, Infosys CEO and
Managing Director S D Shibulal, who will retire in January
next year, said he is leaving behind a "stronger Infosys".
Infosys had reported a net profit of Rs 2,394 crore in
the same quarter last fiscal.
Revenues for the reported quarter were up 23.2 per cent
to Rs 12,875 crore from Rs 10,454 crore in the year-ago
period.
Revenue forecast in dollar terms is in the range of 7-9
per cent for 2014-15 fiscal, which is way below industry body
Nasscom's projection of 13-15 per cent.
In rupee terms, the firm gave a revenue guidance of 5.6-
7.6 per cent for the current financial year.
Infosys shares gained nearly 1 per cent on BSE. "Infosys
results were good and better-than-expectations. But revenue
guidance was slightly below expectations," said Ashika Stock
Brokers Research Head Paras Bothra.
"If I look at the period, I have made a number of
choices and I think they were all the right choices," Shibulal
told reporters .
In response to a question whether the company is less
optimistic or more optimistic about the year ahead, Shibulal
said: "All the factors have been factored into the guidance
and our guidance is the statement of fact. We have factored in
all the information that we have."
"What are the information we have.... we know the
momentum of Q3 and Q4, we know the Q4 numbers, we know that
our pipeline is marginally better.....we have factored all
these things and have come out with a guidance and our
guidance is a statement of fact as it stands today."
Responding to a question, Shibulal termed the top-level
exits at Infosys as nothing abnormal and part of any company".
"I think we need to put things into perspective, in a
large company with a good number of leaders, one or two people
leaving is not abnormal at all. That's part of life, that's
part of any company's life," he said.
Infosys has seen nine top level exits in a short-time,
including leaders who were tipped to be in fray for the
top job in the company.
Somme had attributed exits to the return of N R Narayana
Murthy at the helm of affairs last year.
Stating that he is leaving behind a stronger Infosys, he
said: "When I took over they were two things which were on my
mind, No 1 was to leave behind a stronger Infosys than what I
inherited at that period and I clearly believe that we have a
stronger Infosys today because we have put behind all the
issues and we have a new set of leaders in place to take
over the organisation towards further growth."
"Second on performance, our performance for the last two
years in my mind is not satisfactory. But at the same time
I believe that we have improved our performance year on year
by hundred per cent and have bridged the gap...." he said.
Shibulal, who succeeded Kris Gopalakrishnan as CEO and
MD, in 2011, said he took over in a very challenging
environment:
"Infosys was facing several external and internal
challenges during that period. The external environment was
challenging because of the economic uncertainty in the
environment as well as the specific challenges faced by our
clients."
He said internal challenges were many when he took over,
like transformation to Infosys 3.0 and legal challenges.
"Today we concluded all these challenges the employee
retaliation cases have been concluded, the justice department
probe has been concluded....I have done extensive client
meetings and have articulated the new Infosys 3.0 strategy and
mitigated any impact."
Affirming that growth has gone up under his stewardship:
Shibulal said: "Just after I took over we had two quarters of
negative growth we have arrested that, the growth rates has
gone up by hundred per cent year on year from last year to
this year, we have focused on large outsourcing deal."
In response to a question on why the decision on leaving
the office before the term ends: Shibulal said: "My
superannuation will come in March, in January there will be
board meeting for that...it was more important to share a
plan and announce ...the transition will be effective."
"Given that the board had initiated the search, I thought
now is the best time to provide clarity and remove any
uncertainty about how it will happen, so that's what I did. I
will retire either in January or at the earliest point when
the nominations committee will decide the next candidate," he
added.
Infosys in a statement on April 11 had said that the
Nominations Committee of the company's Board of Directors has
begun the search to select the successor to Shibulal
Shibulal also said that he will resign both as CEO and as
the member of the board as and when it happens.
Commenting on the deals, he said: "60 per cent of our
revenue comes from operations which include large outsourcing
deals, 34 per cent comes from consulting -system integration
and rest from products and platform. To achieve any growth we
have to grow all the three."
"In operational space, we are looking at winning more
and more large outsourcing deals...on the consulting, system
integration space we are trying to bring in more and more
transformation and products and platforms is completely new
space for us but we are probably ahead of the industry in that
space."
On acquisition, he said: "We continue to look at options
in acquisition."
Admitting that attrition is one of the highest that he
has seen, Shibulal said: "We have done many many things. We
have done good compensation increase, we have given
promotions, we are providing trainings and implementing fast
track programme to employees....we have done many many things
and we hope to turn the tide towards other side."
"During the year we completed a civil settlement that
concluded the investigation by US attorney's office and US
department of homeland security relating to visa matters that
was subjected to investigation."
"There are no criminal charges or court rulings against
the company...." he added. PTI KSU
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