Infosys adds 37 clients in Q2, 5 from fortune 500 list

Moneycontrol Bureau

Infosys' net added 37 clients during the September quarter, "one of the highest over the quarters," said SD Shibulal, MD & CEO.

Gross addition of clients (including subsidiaries) of the country’s second largest software services exporter increased to 68 in the quarter gone by from 66 in a year ago period and 39 in previous quarter.

Shibulal says five of the 37 new clients were Fortune 500 companies, adding, "We have closed five-six large deals. Our large deals are mostly USD 50 million and above. It will get realised over the next three-five years. We have top 25 grown by 3.3 percent and non-top 25 has also grown by 3.4 percent or so."

The growth in clients addition was largely on the back of recovery in the US and Europe -- the largest markets for software companies.

“Generally the environment has got little better over the last two quarters. We have seen some momentum in financial services which is our largest segment. There is a momentum being built up, the GDP growth has improved for US. Europe is showing some signs of improvement, they will definitely help us,” says Shibulal.

Also Read - Growth to be focus, not margins: Infosys CEO Shibulal

The company now has 873 active clients, compared to 836 in the June quarter quarter and 715 last year.

The order from one of the clients was for USD 70 million. Two clients were for USD 30 million and two for USD 40 million each. It added 7 clients of worth USD 10 million each and 6 worth USD 5 million each.

Its one-million dollar clients have gone up from 466 to 469 during the quarter.

"We have had good large deal wins, particularly again in Europe as well as in US, three in financial services sector. Australia is doing very well for us," says BG Srinivas, Head-Europe, Global Head-Financial Services and Insurance.

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Infosys’ second quarter (July-September) net profit rose by 1.4 percent quarter-on-quarter (1.6 percent year-on-year) to Rs 2,407 crore, impacted by one-time visa settlement charge of Rs 219 crore.

Consolidated quarterly revenue of the company jumped 15 percent sequentially (31.5 percent year-on-year) to Rs 12,965 crore, with the company attributing it to robust volume growth, stable pricing and strong client addition during the growth. The company, like most exporters, also benefitted from the weakness in the rupee during the quarter. The company said average rupee-dollar rate during the quarter was 62.77.

Consolidated dollar revenues grew 3.76 percent Q-o-Q to USD 2066 million.

The company raised its full year revenue guidance to 9-10 percent from 6-10 percent earlier. This has given some comfort to analysts that the company will be able to grow its revenues by at least 10 percent this quarter.

(Posted by Sunil Shankar Matkar)