Infosys ups guidance on strong growth, dollar

Bengaluru:  Riding on strong growth in a weak quarter and on an appreciating US dollar, software major Infosys Ltd. on Thursday revised its revenue guidance upwards for the 2015-16 fiscal for the second time. "Our consolidated revenue guidance has been increased in rupee terms to 12.8-13.2 percent in constant currency and 16.2-16.6 percent as per the December 31 exchange rate when dollar was Rs.66.16," the city-based IT bellwether said in a statement here. Under the International Financial Reporting Standard (IFRS), the outsourcing major increased the annual guidance to 12.8-13.2 percent in constant currency and 8.9-9.3 percent on the exchange rates in dollar terms for fiscal 2016. This is the second time in this fiscal (FY 2016) that the company has revised guidance owing to volatile currency impacting the rupee in the foreign exchange market. On October 10, the company upped its guidance to 13.1-15.1 percent from 11.5-13.5 percent in rupee terms but lowered to 6.4-8.4 percent from 7.2-9.2 percent in dollar terms as projected in July due to depriciation in rupee due to currency volatility. The company also increased the conversion rate again by 0.57 cents again to Rs.66.16 per dollar from Rs.65.59 on September 30 on a stronger greenback. Earlier, the company reported Rs.3,465-crore net profit for October-December third quarter of this fiscal, posting 6.6 percent year-on-year (YoY) growth and 2 percent up sequentially, as per the Indian accounting standard. Similarly, consolidated revenue grew 15.3 percent YoY and 1.7 percent sequentially to Rs.15,902 crore for the quarter under review (Q3). Under the International Financial Reporting Standard (IFRS), net income, however, was fractional (0.4 percent) up YoY and 0.9 percent sequentially to $524 million but gross income (revenue) grew 8.5 percent YoY and 0.6 percent quarterly to $2,407 million ($2.41 billion). Operating profit at Rs.3,959 crore is up 7.3 percent YoY from Rs.3,689 crore in like period year ago but 0.9 percent less sequentially from Rs.3,993 crore quarter ago. In dollar terms, operating profit at $599 million is 1.2 percent up YoY from $592 million but declined 1.8 percent from $610 million in second quarter (July-Sep). Volume growth for the quarter was 3.1 percent sequentially. Buoyed by the growth and revised guidance, the company's blue chip scrip soared on the stock markets, with its Rs.5 per share soaring Rs.51.65 or 4.77 percent to Rs.1,134 by noon from opening price of Rs.1068 and Wednesday's closing rate of Rs.1,082.35 on the Bombay Stock Exchange. The company and its subsidiaries worldwide added 75 clients during the quarter as against 82 quarter ago and 59 year ago, taking the total number of customers to 1,045 from 1,011 quarter ago and 932 year ago.