Infosys makes kickass profits in Q2 but lowers revenue guidance. Here’s why

Infosys exceeded its expectations as it posted 9.8% increase in consolidated net profit to Rs 3,398 crore for Q2 ended September 30, 2015.

Infosys reported a net profit of Rs 3,096 crore in the year-ago period. Infosys had reported a net profit of Rs 3,030 crore and revenues of Rs 14,354 crore for the April-June quarter of this financial year.

However, the company lowered down its full-year revenue guidance as Infosys’ CFO Rajiv Bansal quit, who will be replaced by strategic operations head Ranganath D Mavinakere.

For the July-September quarter, Infosys posted a net profit of $519 million and revenue jumped 8.7 % to $2.39 billion.
"We are experiencing a once-in-a-generation opportunity for a services company to help businesses maximize their potential with technology. From automation and AI helping to simplify and enable existing landscapes as well as build intelligent systems that help us solve our most complex emerging problems, to education and design helping us to rethink the human experience and helping uncover our most important horizons, a great services organization can truly partner with and amplify businesses," said CEO Vishal Sikka.

Sikka, who joined the company last year, has strengthened the top management team by hiring a number of high-profile former SAP colleagues, invested in next-gen startups and carried out a massive internal overhaul, etc.

READ ALSO: 6 ways in which Vishal Sikka turned Infosys’ fortunes on its head!

With Infosys’ profits, expectations will now increase from other IT firms like Tata Consultancy Services.

Infosys’ performance comes amid lowest global IT spending.

Meanwhile, Infosys COO UB Pravin Rao said the company’s growth was driven by recent initiatives around service differentiation, improvement in client mining and higher focus on winning large deals.