Infosys Q3 profit falls 30%; announces share buyback

NEW DELHI: India’s second largest IT firm, on Friday reported nearly 30 per cent fall in its net profit for the December quarter. On a year-on-year basis, the company posted a profit of Rs 3,610 crore in Q3 against Rs 5,129 crore in the October-December 2017 quarter.

The company‘s revenue from operations in Q3 jumped more than 20 per cent to Rs 21,400 crore when compared with the Rs 17,794 crore in the year-ago period.

The Infosys board has also approved buyback of shares worth up to Rs 8,260 crore at a maximum price of Rs 800 per share. It has also announced a special dividend of Rs 4 per share.

Also, ADS (American depositary share) holders are permitted to convert their ADS into equity shares, and, subsequently opt to sell such equity shares on the Indian stock exchanges during the buyback period, the filing said.

The company said it will announce the process, timelines and other statutory details of the buyback in due course.

Infosys had completed its maiden buyback of Rs 13,000 crore in December 2017, comprising 11.3-crore equity shares at a price of Rs 1,150 per share. The buyback scheme — a first in the company‘s over three decade history — had seen participation from Sudha Gopalakrishnan, Rohan Murty and LIC among others.

Commenting on the Q3 numbers, Salil Parekh, chief executive and managing director, said, “With increased client relevance, we saw double digit (10.1%) year-on-year growth in Q3 on a constant currency basis. We also had another strong quarter in our digital business with 33.1% growth and large deals at $1.57 billion which gives us confidence entering 2019.”

The IT major said it has revised upwards its FY2018-19 revenue guidance in constant currency to 8.5-9 per cent.

Total expenses in the quarter surged over 26 per cent to Rs 17,021 crore, which included an additional depreciation and amortization charge of $12 million and a reduction of $65 million in the carrying value for its Skava units.

The company also said it was “no longer highly probable” that the sale of its units Kallidus & Skava and Panaya would be completed by March 31, 2019.

Among some other decisions, the board has also approved the re-appointment of Kiran Mazumdar–Shaw as the lead independent director for a second term from April 1, 2019 to March 22, 2023.

(With agency inputs)
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