Infosys raises revenue guidance, but third-quarter profit misses estimate
Fri Jan 11 2019
Lucy Harlow (2410 articles)

Infosys raises revenue guidance, but third-quarter profit misses estimate

 Indian IT services company Infosys Ltd raised its full-year revenue growth forecast on Friday, but reported a larger-than-expected drop in third-quarter profit, due to higher expenses.

The country’s second-biggest software services exporter by market capitalisation reported a 29.6 percent fall in attributable profit for October-December to 36.09 billion rupees ($ 511.94 million). That compared with the 41.31 billion rupees average of 25 analyst estimates compiled by Refinitiv Eikon.

A year earlier, it made a profit of 51.29 billion rupees, helped by tax benefits from the firm’s deal with the U.S. Internal Revenue Service, the company said in a statement.

Still, Infosys raised its revenue growth forecast for the year through March 2019 to 8.5-9 percent in constant currency, from 6-8 percent previously.

Total expenses in the quarter surged over 26 percent to 170.21 billion rupees, which included an additional depreciation and amortization charge of $ 12 million and a reduction of $ 65 million in the carrying value for its Skava units.

The company also said it was “no longer highly probable” that the sale of its units Kallidus & Skava and Panaya would be completed by March 31, 2019.

Meanwhile, revenue from operations in the quarter rose 20.3 percent to 214 billion rupees in what is usually considered a seasonally weak period for Indian IT firms.

Infosys also approved a buyback of shares worth 82.60 billion rupees as part of its capital allocation policy.

On Thursday, market leader Tata Consultancy Services Ltd reported a record quarterly profit for October-December.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe