Infosys Q4 net up 3.8%, FY17 $ revenue growth seen at 11.8-13.8%

Moneycontrol BureauIT software major Infosys' fourth quarter profit and operating profit beat analysts' expectations on Friday while revenue matched estimates. Profit grew by 3.8 percent to Rs 3,597 crore in January-March quarter compared to Rs 3,465 crore in preceding quarter despite fall in other income.Rupee revenue increased 4.1 percent sequentially to 16,550 crore from Rs 13,411 crore in same period.Dollar revenue in Q4 rose 1.6 percent to USD 2,446 million and 1.9 percent in constant currency compared to preceding quarter.“I am proud of company’s achievements in my first fiscal year as CEO of Infosys," Vishal Sikka, CEO & MD of Infosys said."The world of our future looks entirely different – it is a world that is being fundamentally reshaped by digital technologies, and it is our endeavor to create great value for every business through solutions built on our artificial intelligence technology and open, cloud platforms, to have Infoscions amplified by intelligent technology, to bring purposeful innovation to life, and in that sense, we are still very much at the beginning of this journey," he added.According to an average of analyst estimates polled by CNBC-TV18, the country's second largest IT company was expected to post profit at Rs 3,502 crore (up 1.07 percent QoQ) on revenue of Rs 16,545 crore (up 4 percent QoQ) in March quarter. Dollar revenue was estimated at USD 2,454.5 million (up 2 percent QoQ) during the quarter.Infosys expects FY17 revenue growth at 11.5-13.5 percent in constant currency and 11.8-13.8 percent in dollar terms, which is far better than industry guidance.Nasscom, that represents Indian software industry, expects the IT industry to grow 10-12 percent in FY17."We maintain EBIT margin guidance band of 24-26 percent for current financial year. We see scope for operational improvement," Sikka said while addresing press conference.In March quarter, earnings before interest and tax grew by 6.6 percent to Rs 4,220 crore and EBIT margin expanded by 60 basis points to 25.5 percent compared to preceding quarter, supported by rupee and better utilisation.Attrition rate reduced to 17.3 percent in Q4 compared to 18.1 percent in Q3, which was reflective of increased engagement with people all through the year and steps to make Infosys an exciting place for the world’s best talent, UB Pravin Rao, COO said.Utilisation rate excluding trainees in Q4 stood to 80.1 percent versus 80.6 percent and including trainees at 74.7 percent against 74.2 percent in Q3.FY16 performanceProfit in financial year 2015-16 increased 9.4 percent to Rs 13,491 crore and revenue jumped 17.1 percent to Rs 62,441 crore compared to previous year.Infosys' FY16 dollar revenue growth in constant currency matched analysts' expectations at higher end of the band (12.8-13.2 percent)."Revenue in FY16 increased 9.1 percent in dollar terms and 13.3 percent in constant currency terms compared to FY15," the IT software major said.Other income during the quarter declined 3.7 percent to Rs 772 crore on sequential basis and fell 8.8 percent in FY16 to Rs 3,125 crore against previous financial year.Clients addition

Infosys said its clients total in March quarter increased to 14 from 13 in USD 100 million+ category and it added 3 clients in USD 75 million+ category (taking total to 31) compared to December quarter. In USD 50 million+ category, it added 1 client."We won 6 large deals in Q4 and want to win quarterly deal win rate to USD 1 billion," Vishal Sikka said.

Active clients during the quarter rose to 1,092 from 1,045 in preceding quarter and there was a gross addition of 89 new customers in Q4.

The company said top client's contribution to revenue increased to 3.6 percent from 3.5 percent but top five clients contribution declined to 13.7 percent (from 13.9 percent) and top 10 clients dropped to 21.8 percent (from 22.6 percent) on quarter-on-quarter basis, adding repeat business slipped 1 percent to 95.8 percent.