Infosys posts 13.4% rise in net profit, misses estimates

Infosys registered a 13.4 per cent rise in consolidated net profit at Rs 3,436 crore for Q1 ended June 2016 but missed estimate.

The IT major also slashed its revenue guidance for FY 2017 to 10.5-12 per cent in constant currency terms.

In its BSE filing, Infosys had posted a net profit of Rs 3,028 crore in the year-ago period as per Indian Accounting Standard.

"We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1," said Infosys CEO Vishal Sikka.

The consolidated revenue for the quarter was up nearly 17 per cent at Rs 16,782 crore, from Rs 14,354 crore in April-June of 2015.

For the full year 2016-17, Infosys cut its revenue forecast to 10.5-12 per cent in constant currency terms, lower than the previously estimated 11.5-13.5 per cent.

The outlook translates into 11.7-13.2 per cent revenue growth in rupee terms and 10.8-12.3 per cent in dollar terms.

Sikka said Infosys continued to see strong momentum in large deal wins.

The company added 3,006 employees (net basis) from March quarter, taking its headcount to 1.97 lakh employees as on June 30, 2016. The attrition rate was at 21 per cent for the said quarter.

Liquid assets, including cash and cash equivalents, available-for-sale financial assets and government bonds, were Rs 33,212 crore in the quarter under review compared with Rs 34,468 crore as on March 31, 2016.