Infosys Q1 net up 13%; disappoints with cut in FY17 outlook, shares tank 9%

Bengaluru: IT major Infosys on Friday posted a 13.4 percent rise in consolidated net profit at Rs 3,436 crore for the first quarter ended June 2016 and slashed full-year revenue guidance to 10.5-12 percent in constant currency terms.

The numbers were below market expectations, leading to the Infosys stock tumbling 8.4 percent to Rs 1,077.10 on BSE in early trade.

The Bengaluru-based firm had reported a net profit of Rs 3,028 crore in the year-ago period as per Indian Accounting Standard, it said in a BSE filing.

The consolidated revenue for the quarter was up nearly 17 percent at Rs 16,782 crore, from Rs 14,354 crore in April-June of 2015.

For the full year 2016-17, the country's second-largest software services firm slashed its revenue forecast to 10.5-12 percent in constant currency terms, lower than the previously estimated 11.5-13.5 percent.

The outlook translates into 11.7-13.2 percent revenue growth in rupee terms and 10.8-12.3 percent in dollar terms.

"We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1," Infosys CEO Vishal Sikka said.

He added that the company continued to see strong momentum in large deal wins.

In US dollar terms, its consolidated net profit rose 7.4 percent to USD 511 million in the June quarter of 2016-17 while revenue went up 10.9 percent to USD 2.5 billion.

The company added 3,006 employees (net basis) from March quarter, taking its headcount to 1.97 lakh employees as on June 30, 2016. The attrition rate was at 21 percent for the said quarter.

Liquid assets, including cash and cash equivalents, available-for-sale financial assets and government bonds, were Rs 33,212 crore in the quarter under review compared with Rs 34,468 crore as on March 31, 2016.