Infosys share buyback as profits slide

The logo of Infosys is pictured inside the company’s headquarters in Bengaluru, India, April 13, 2017. — Reuters pic
The logo of Infosys is pictured inside the company’s headquarters in Bengaluru, India, April 13, 2017. — Reuters pic

MUMBAI, Jan 11 — India’s second-largest software exporter Infosys reported today a 30 per cent fall in quarterly profits amid seasonal weakness in the IT sector and mounting expenses.

The Bangalore-headquartered company also announced board approval for the buyback of shares worth 82.60 billion rupees (US$1.184 billion) and raised its revenue forecast for the current .

“We had another strong quarter in our digital business with 33.1 per cent growth and large deals at US$1.57 billion which gives us confidence entering 2019,” chief executive Salil Parekh said in a statement.

Net profit in the three months to December 31 came in at 36.10 billion rupees (US$511.94 million), below the 51.29 billion rupees in the same period a year earlier.



Infosys however raised its forecast for earnings growth from 8.0 per cent to 8.5-9.0 per cent in dollar terms for the current fiscal year.

India’s US$150 billion IT sector has long been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and visa restrictions.

Infosys’ rival and India’s largest IT services exporter Tata Consultancy Services yesterday reported a 24.1 per cent rise in net profit for the quarter ending in December. — AFP

Source: The Malay Mail Online





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