Infosys Q3 earnings: Growth falls in America, rises in Europe

Infosys, India's second-largest software exporter, raised its annual sales growth forecast for the second consecutive quarter as economic recovery prompted clients in Europe to spend more in the last quarter.

FP Staff January 10, 2014 11:35:17 IST
Infosys Q3 earnings: Growth falls in America, rises in Europe

Infosys, India's second-largest software exporter, raised its annual sales growth forecast for the second consecutive quarter as economic recovery prompted clients in Europe to spend more in the last quarter.

The company beat Street expectations, with a 21.4 percent year on year rise in fiscal third-quarter profit. Its profitability was impacted by visa cost of Rs 219 crore (one off item) in the quarter ended September 2013.

The company expects in revenue in dollar terms to increase by 11.5 percent to 12 percent in comparison to its October forecast for growth of 9 percent to 10 percent.

Infosys Q3 earnings Growth falls in America rises in Europe

Reuters

Infosys posted better-than-estimated growth signaling outsourcing demand has gathered momentum as Europe recovered from its debt crisis and the US resolved budget negotiations.

Here's a look at Infosys's growth in the geographical segment:

In North America, Infosys' growth declined by 0.8 percent

In Europe, it grew by 5.5 percent sequentially; and 3.5 percent in constant currency.

In India, it grew by 9.2 percent sequentially; and 8.1 percent in constant currency.

Rest of the world grew by 4.9 percent sequentially; and 5.2 percent in constant currency.

The company said its revenues from its largest vertical financial services and insurance sector grew 2 percent sequentially. Its customers in this segment, including banking, contributed 33.5 percent of the total sales during the December quarter.

During the October-December quarter, the Bangalore based company's revenues from manufacturing clients rose 0.1 percent, while revenues from retail and life sciences sector grew 3.4 percent. Manufacturing contributes 22.8 per cent of Infosys's overall sales. Customers in retail and life sciences, which includes large retail chains and healthcare companies in the US and Europe, contributed 24.6 percent of the company's revenues.

Energy, Utilities, Communications & Services, which contributed 19 per cent of Infosys's sales, grew 0.8 percent.

Updated Date:

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