Sikka’s Magic Worked, Infosys Registers Profit In Third Quarter

On June 12, 2014, when Vishal Sikka was appointed as the CEO of India’s second largest IT firm Infosys, industry experts termed this as cat amongst pigeons. But this technology genius used his expertise in charting ‘renew and new’ strategies to attain the growth target set by Infosys.

Owing to strong demand from its clients in the US, which is regarded as one of the largest markets of Infosys, the IT company maintained its sales growth outlook for the year.

Infosys posted a higher-than-expected 13% increase in net profit for the third quarter (Q3) that ended December 31 due to an increase in demand for outsourcing service.

The Bangalore-headquartered firm also registered a quarterly profit of Rs 32.50 billion ($520.9 million) during Q3, as against Rs 28.75 billion during the same period in 2014.

Owing to strong demand from its clients in the US, which is regarded as one of the largest markets of Infosys, the IT company maintained its sales growth outlook for the year.

Industry experts had expected the software services exporter to slash its forecast of 7-9% sales growth for the year ending in March 2015, mainly because of the instability in the currency value. More than half of its client list consists of those from the US and Europe.

Infosys has also lured 59 new clients, who are helping it boost its revenue in the period by 5.9% to Rs 137.96 billion.
(Image: The Economic Time)