Infosys Q3 results: Ten key takeaways

BANGALORE: Here are 10 takeaways from the third quarter results of Infosys, which declared its number this afternoon.

Revenue: Infosys reported a dollar revenue growth of 2.6% to $2,218 million for the three month period ending December, aided by growth in all business verticals and improved client demand from the US.

Guidance: Infosys does not issue quarterly guidance and retained its annual guidance of 7-9% for the fiscal year 2015. The National Association for Software and Services Companies expects the industry to grow 13-15% in FY15.

Attrition: Infosys attrition rates, highest among all homegrown IT firms, inched marginally up to 20.4% as against 20.1% at the end of July-September period. Hiring: Infosys added 13,154 employees during the quarter, bringing the total number of employees as of December 31 to 169,638 employees.

Client additions: Infosys added 59 new clients during the period as against 49 clients in the July-September period, thereby taking the total number of Infosys’ active clients to 9.

Geographies: North America grew 2.1% sequentially while Europe saw a 2.1% de-growth. However, revenues from India, which accounts for less than 3% of the company’s total revenues, jumped 14%.

Verticals: Banking financial services and insurance space, which now accounts for 33.1% of Infosys revenues, grew 1.8% while manufacturing recorded a 1.4% growth.

Margins: Infosys’ margin improved by 60 basis points to 26.7% as against 26.1% at the end of second quarter.

Discretionary spending: Infosys sees discretionary spending returning in some of its clients and the company expects this to power revenue growth in its digital business.

Utilisation: Infosys’ utilization, including trainees, improved to 75.7% during the three month period from 75.2% at the end of second quarter.