Vishal Sikka, Chief Executive Officer & Managing Director, Infosys Ltd

IIFL | Mumbai | April 18, 2016, 10:49 IST

“The growth is very positive and I am quite happy with the performance.”

Vishal Sikka, Chief Executive Officer & Managing Director, Infosys Ltd
Vishal Sikka, Chief Executive Officer & Managing Director, Infosys Ltd did BS in Computer Science from Syracuse University. He holds a Ph.D. in Computer Science from Stanford University, US. Prior to joining Infosys, Dr. Sikka was a member of the Executive Board of SAP AG, leading all products and technologies, and driving innovation globally. In his 12 years at SAP, Dr. Sikka was instrumental in defining the company’s technology and product strategy and architecture. His experience straddles research in artificial intelligence, intelligent systems, programming languages and models, and information management – at Stanford University, at Xerox Palo Alto Labs, and as founder of two startup companies.
 
Infosys is a global leader in consulting, technology, and outsourcing and next-generation services. Infosys Technologies (China) Co., Ltd is a wholly owned subsidiary of Infosys Limited, aiming to provide customers with extensive service encompassing technical consulting, application development, system integration, testing, IT infrastructure service, and business process outsourcing. The company possesses deep expertise in various domains and owns multiple delivery centers with an on-time delivery rate of more than 98%. It also has leading partners in industries such as finance, manufacturing, retail, and energy.
 
Yash Ved and Tejal Shringarpure of IIFL provide you the highlights of their media interaction with Vishal Sikka. Vishal Sikka said, “The growth is very positive and I am quite happy with the performance.”
 
Give us an overview of your financials?
The net profit grew 3.8% to Rs.3,597 crore as against Rs. 3,465 crore qoq. The IT firm registered a net revenue of Rs.16,550 crore in Q4 compared with Rs.15,902 crore in Q3 FY16. The consolidated EBIT Margin stood at 25.5% in Q4 compared with 24.9% in Q3. The company said that its Q4 margins improved on rupee movement and better utilisation.
 
Liquid assets, including cash and cash equivalents, available-for-sale financial assets, and government bonds were $ 5,202 million as of March 31, 2016 compared with $ 4,765 million as of December 31, 2015 and $ 5,214 million as of March 31, 2015.
 
How was the quarter as a whole? How do you see things shaping up in the coming quarters?
We started the year with a strategy aimed at completely reimagining the notion of services and transform Infosys. Over the course of this year, the strategy of bringing automation and innovation to our clients, on a foundation of learning and education, started yielding results in the form of organic growth of our client relationships and win rates in large deals. The types of projects that we are involved in now (in strategic areas) were the ones we never participated in before. I am proud of what our teams have achieved during this quarter and in the year.
 
The results are heartening but are still based on metrics of the past and thus reflect the way the industry has been. The future in our universe looks entirely different; it is a world that will be fundamentally reshaped by digital technologies. It is our endeavour to create great value for every business through solutions built on our AI technology and open cloud platforms to have Infoscions amplified by intelligent technology and bring purposeful innovation to life. In this context, we are still very much at the beginning of this journey.
 
What is your revenue and margin guidance for FY17?
Revenue guidance for FY17 is 11.5%-13.5% in constant currency terms and at 11.8-13.8% in dollar terms. While we maintain the margin guidance band at 24-26% for FY17, we will revisit the guidance if needed.
 
Can you throw some light on your deal wins and the deal pipeline?
Infosys won six large deals worth $757 mn; three were in Europe and three in North America across sectors. This count excludes two additional large deal wins we secured during the quarter. The deal pipeline looks healthy and we expect to achieve $1 bn deal win rate in the next two to three quarters. We would focus on securing a large number of smaller deals.
 
Tell us about sectors where you experienced headwinds and softness in Q4?
Infosys experienced headwinds in verticals such as energy, retail, and telecom, whereas it had softness in the insurance sector.
 
What are your plans going ahead?
Every industry is going through deep-routed transformation. We are doing projects around IT optimisation and are quite positive. Our endeavour is to create a new kind of IT services company.
 
Can you take us through your management changes?
Our key high-profile appointees include Mr. Mohit Joshi, Ravi Kumar S, and Mr. Sandeep Dadlani.
 
What are the business highlights for the quarter?
During this quarter, we made significant advances in our strategy to deliver automation and innovation through our traditional and new service offerings, our platforms and tools, and through investments in the broader ecosystem. This enabled us to create more depth in existing client relationships, win more deals, specifically large deals, and open up entirely new types of strategic projects for Infosys. 
 
We continue to see new strategic projects coming to Infosys based on our Aikido service offerings as well as our platforms and tools. 
 
This quarter, we announced the availability of IIP on Amazon Web Services Marketplace (AWS Marketplace). Businesses will now be able to gain robust data insights quickly, while tapping into the flexibility and the lower cost of a cloud-based platform.
 
Panaya and Skava continued to gain traction both as part of large client engagements where these products were central to the value proposition.
 
What are your attrition and utilization rates?
Our attrition rate stands at 18.3%. Employee attrition reduced further in Q4, which reflects our increased engagement with our people through the year.
 
Our utilisation rate (including trainees) stood at 74.7% vs 74.2% qoq, whereas the rate excluding trainees was registered at 80.1% vs. 80.6% qoq.


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