Infosys expects 10% growth this fiscal

Software major Infosys Ltd on Friday reported net profit of Rs.3,097 crore for the fourth quarter of fiscal 2014-15 with a 3.5 percent growth over the corresponding period the previous year.

The company posted a revenue of Rs.13,411 crore for the period under review, up by 4.2 percent over the previous year.

The company has given a guidance of 10-12 percent growth in constant currency terms for the current fiscal.

According to Infosys, the revenues are expected to grow 8.4-10.4 percent in Indian rupee terms.

For the full year, the company posted a consolidated revenue of Rs.53,319 crore, logging an year-on-year growth of 6.4 percent.

The net profit stood at Rs.12,329 crore, up by 15.8 percent.

The company also announced a definitive agreement to acquire Kallidus Inc and invest in Airviz.

According to the company, its liquid assets stood at Rs.32,585 crore as on March 31, 2015 as compared to Rs.34,873 crore as on December 31, 2014 and Rs.30,251 crore as on March 31, 2014.

The company board that met here on Friday recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Deposiary Share (ADS) for every ADS held as on a record date to be determined.

The Board recommended a final dividend of Rs.29.50 share per share for fiscal 2015 (equivalent to Rs.14.75 per share after 1:1 bonus issue).

The board decided to hike the dividend pay-out ratio to up to 50 percent of post tax profits effective from fiscal 2015 — from 40 percent.

During the year, the gross employee additions were over 50,000 while the quarterly annualized attrition declined to 13.4 percent.

“We see the industry going through a fundamental and structural transition. Despite being a challenging quarter, I am encouraged by the early successes in executing our Renew-New strategy, on a foundation of learning,” Vishal Sikka, chief executive officer (CEO) and managing director, was quoted as saying in a statement.

“Services growth in the fourth quarter was lower than we expected though we saw healthy growth in Financle and our Edge suite. Pricing continues to be under pressure due to increasing commoditisation in the traditional outsourcing business, requiring us to ramp up productivity through automation and enhance our differentiation in large engagements,” U.B. Pravin Rao, the chief operating officer, said in the statement.

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