The company has posted a net profit of Rs 3606 crore for the quarter ended September 30, 2016 as compared to Rs 3398 crore for the quarter ended September 30, 2015. Total Income has increased from Rs 16428 crore for the quarter ended September 30, 2015 to Rs 18070 crore for the quarter ended September 30, 2016.
The Board of Directors declared an interim dividend of Rs 11 per share. The record date for interim dividend is October 24, 2016 and the payment will be made on October 26, 2016.
“We focused on strong execution in Q2 with our core IT services business showing good progress on the strength of our innovation and operational initiatives. While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.” said Dr. Vishal Sikka, CEO.
“Longer-term, I believe it’s increasingly clear that our industry’s future lies in evolving from a cost-based, people-only model, to one in which people are amplified by software and AI, and are freed to innovate in areas that are strategic to our clients’ future. And in this all-important transformation, I am glad to see us make continued progress."
“We had well-rounded growth during the quarter in our market segments. Our delivery and support teams executed well on their plans for resource management during the quarter, leading to an uptick in utilization.” said U B Pravin Rao, COO. “I am also pleased that the changes we made to employee engagement, policies and rewarding high performers continue to help retain our high quality workforce.”
“Our margins expanded during the quarter on the back of further improvement in operational efficiency.” said M.D. Ranganath, CFO. Operating cash flows for the quarter were healthy and we effectively navigated a volatile currency environment through prudent hedging.
The Company’s revenue outlook (consolidated) for the fiscal year ending March 31, 2017, under IFRS is as follows:
Revenues are expected to grow 8.0% - 9.0% in constant currency;
The above constant currency guidance translates to 9.2% - 10.2% in INR terms based on March 31st rates, 11.2% - 12.2% based on June 30th rates and 10.9% - 11.9% based on September 30th rates
On the recommendations of the Nomination and Remuneration Committee, the Board of Directors inducted Mr. D.N. Prahlad as an Independent Director of the Board effective October 14, 2016
D. N. Prahlad is the founder and CEO of Surya Software Systems Private Limited, Bangalore. Surya focuses on products for financial risk management of financial institutions in general and banks in particular. He is on the advisory board of Computer Science and Automation Department of Indian Institute of Science, Bangalore. Prahlad is a B.Sc. with honours in mathematics from Bangalore University and B.E. (Electrical technology and Electronics) from Indian Institute of Science, Bangalore.
Prior to founding Surya, Prahlad played a key role in the rapid growth of Infosys, being associated with the company during its formative years.
Welcoming D.N. Prahlad, Mr. Seshasayee, Chairman of the Board said, “We are delighted to welcome Prahlad, a distinguished technologist to the Board. Prahlad brings with him, not only his deep knowledge of the Company, but also sharp insights into the Industry”.