- Q3 sequential revenue growth at 0.6% in USD terms and 1.1% in constant currency
- Q3 yoy revenue growth at 8.5% in USD terms and 12.5% in constant currency
- FY 16 revenue guidance increased to 12.8%-13.2% in constant currency and 8.9%-9.3% in USD terms on Dec 31st, 2015exchange rates
- Volume growth at 3.1% quarter on quarter
- Attrition declined to 13.4% on standalone basis
- Continued adoption of grassroots innovation and Aikido offerings
Financial Highlights:
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2015
Quarter ended December 31, 2015
- Revenues were $ 2,407 million for the quarter ended December 31, 2015
- QoQ growth was 0.6% in reported terms; 1.1% in constant currency terms
- YoY growth was 8.5% in reported terms; 12.5% in constant currency terms
- Operating profit was $ 599 million for the quarter ended December 31, 2015
- QoQ growth was (1.8%)
- YoY growth was 1.2%
- Net profit was $ 524 million for the quarter ended December 31, 2015
- QoQ growth was 0.9%
- YoY growth was 0.4%
- Earnings per share (EPS) was $ 0.23 for the quarter ended December 31, 2015
- QoQ growth was 0.9%
- YoY growth was 0.4%
- Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were $4,765 million on December 31, 2015 as compared to $4,894 million as on September 30, 2015
"We are starting to see creative confidence blossoming within Infosys - David Kelley's beautiful idea that innovation is not specific to one department but is an ability within all of us, waiting to unleash our full creative potential. We are seeing Infoscions becoming innovators, bringing innovation and client value to each individual project. This confidence can only come from a culture of learning and empowerment, and this is the kind of company we are endeavoring to create," said Dr. Vishal Sikka, CEO and MD. "Alongside grassroots innovation, we continue to see growing adoption of our Aikido services, bringing the power of intelligent systems, automation and software to amplify the skills and imaginations of our people. This combination helped us deliver encouraging results despite the traditional seasonality of the quarter and the additional headwinds, and will strengthen the execution of our strategy towards consistent profitable growth."
"The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter," said U B Pravin Rao, President & COO. "Our continued focus on employee engagement is paying dividends resulting in lower attrition. We continue to simplify our policies and enable greater agility within the company, with the goal of boosting our productivity."
"We have been able to navigate the quarter, better than our earlier expectations," said M.D. Ranganath, CFO. "We will continue to focus on enhancing operational efficiency through multiple levers in the coming quarters."
Outlook*
The Company's outlook (consolidated) for the fiscal year ending March 31, 2016, under IFRS is as follows:
Revenue guidance increased to 12.8%-13.2% in constant currency;
Revenue guidance increased to 8.9%-9.3% in USD terms based on the exchange rates as of Dec 31st, 2015*
*Conversion: AUD/USD - 0.73; Euro/USD - 1.09; GBP/USD - 1.48
Investments and Acquisitions:
Completed the acquisition of Noah Consulting, LLC, a leading provider of advanced information management consulting services for the oil and gas industry.
Invested in WHOOP, an early stage company that offers a performance optimization system for elite professional sports teams, and invested in CloudEndure, a startup that provides Cloud Migration and Cloud-based Disaster Recovery (DR) software.
Business Highlights:
We continue to see a great opportunity to rethink the notion of services - bringing the best of human potential together with software and platforms, to drive the digital transformation of the world around us.
Investing in Artificial Intelligence
In December, we announced our participation in OpenAI, a non-profit organization dedicated to developing and advancing Artificial Intelligence, bringing the best AI talent in the world together in the interest of all of us. This initiative adds an important new dimension to our ongoing efforts in AI.
Increasing the Depth of Client Relationships
In Q3, we strengthened relationships with key clients, including renewing existing large scale contracts, opening new accounts and signing four large deals.
ALSTOM, a global leader in rail transport, selected us for next-generation services in application engineering, development and maintenance, in addition to product lifecycle management to reduce IT costs, improve user experience, and increase the efficiency of the product design process.
MRJ90, the flagship aircraft of the Mitsubishi Aircraft Corporation, Japan (MITAC) recently completed its maiden test flight. We helped MITAC in the mechanical design of fuselage structures, delivered continuous improvements through automation, and reduced both the cost and cycle time.
Mercedes Benz Research and Development Center, India, has partnered with us to run their complete datacenter and network operations support in 15 countries across the APAC region, increasing agility and automation and reducing cost of operations.
