Reality Check: Infosys results disappoint



Infosys closed the fiscal 2017 with a revenue growth of 8.3 per cent in constant currency terms. This is much below the growth of 11.5-13.5 per cent pegged for the software major at the beginning of the fiscal. In the latest March quarter, revenues were flat over the December 2016 quarter in constant currency terms. The company’s largest geography, North America, saw revenue grow 1.2 per cent sequentially in constant currency terms; in Europe, it declined by 1.6 per cent. Revenue from the banking and financial services vertical recorded growth of 0.5 per cent sequentially in constant currency terms. The manufacturing and hi-tech verticals saw flat revenue. The company added 71 clients during the March 2017 quarter. This is lower than the addition of 77 clients in the December quarter. Operating profit margin in the March quarter was 24.6 per cent, lower than the 25.1 per cent recorded in the December 2016 quarter. The stock dipped nearly 4 per cent on Thursday after the declaration of results.

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