Tuesday, July 21, 2015

Infosys Posts Best Sales Growth in 15 Quarters, Shares Jump 15%


Sharemasterindia.com: Infosys on Tuesday reported a better-than-expected performance in its first quarter, beating analyst's estimates on almost all performance metrics. More importantly, Infosys reported its best sales growth in 15 quarters, leading to a 15 per cent bump-up in its shares. India's second biggest outsourcer reported a 4.4 per cent rise in constant currency revenue growth, beating estimates of 2.5-3 per cent growth.
Here is what Infosys Management Said on Q1

  • CEO Vishal Sikka: Infosys is on the path to achieve industry-leading growth rates by the middle of next year.
  • Vishal Sikka: It is one quarter on a long journey, our path is set on 2020 journey of $20 billion in revenue with 30 per cent margins.
  • Vishal Sikka: Q1 results give us a good momentum for the remainder of the year.
  • Vishal Sikka: Extremely pleased with Q1, this is a great set of early results in our journey to become a great services company.
  • Vishal Sikka: Have launched some great initiatives, working to bring innovation to all 8,500 projects in the company.
  • Vishal Sikka: Our win rate has dramatically improved.
  • Vishal Sikka: See tremendous demand for innovative services; energy, retail are seeing disruptions, but we will meet the need of clients.
  • Rajiv Bansal, CFO of Infosys: Currency markets are volatile and don't expect them to change in short term
  • Rajiv Bansal: Pricing environment remains competitive
  • Vishal Sikka: We are very confident about our organic capability, which we will complement with acquisitions
  • Vishal Sikka: We are looking at several companies, generally small ones
  • Pravin Rao, COO of Infosys:  Attrition is under control. In this quarter, attrition has marginally increased, but that is seasonal
  • Vishal Sikka: 2020 goal is not a guidance, its an aspiration. Out of the targeted $20 billion in sales, $1.5 bn will come from acquisitions.
  • Vishal Sikka: We want to acquire innovative companies, those that are relevant for future
  • Vishal Sikka: Swings in results will happen, this is just the beginning
  • Vishal Sikka says: Infosys performed well in Q2 and Q3 in last fiscal, but Q4 was disappointing, which in our view was an aberration
  • Vishal Sikka: The only thing that matters is are you having fun and are people around you having fun
  • Rajiv Bansal: All our investors are long-term investors, they are not influenced by quarterly results
  • Vishal Sikka:  100 per cent of what Infosys is doing is digital, over time more physical work will be automated
  • Vishal Sikka: Will not say Q1 is turning point or inflection point, but reaffirmation that our strategies are paying off

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