Infosys reports mixed Q3, new CEO promises priority update in April

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The company also announced that, with the appointment of Salil Parekh as the CEO and Managing Director of the company for a period of 5 years, the Committee of Directors stands dissolved with effect from January 12, 2018.

Infosys reported a rise in net profit of 38.3 percent from a year earlier to 51.29 billion rupees ($806 million) for the quarter to December 31, way above analysts' estimates.

It also maintained its revenue growth forecast for the year to March at 5.5 percent to 6.5 percent in constant currency terms. Dollar revenue rose 1% to $2.75 billion from the preceding quarter.

Chief Financial Officer M.D. Ranganath said operating margins were stable on improvement in efficiency parameters.

Infosys, the country's second-largest software maker, has recorded a 37.6 percent growth in net profit in the October-December quarter aided by a revival in the demand environment and a one-time tax reversal. Infosys sales growth outlook for FY2017-18 is 5.5-6.5 per cent. Though Parekh has promised that the IT sector is growing at a burgeoning rate and the balance sheet of Infosys is penciling high, but the investors need to be cautious because the picture doesn't seem to be rosy, especially after the news of Infosys President Rajesh Murthy resigned has gone viral after the quarterly announcement. "Everything that I have seen in this company reconfirms that, and my hope and expectations would be to reconnect with the founders, the original people who started the company, and pay respect to them in that light". Third-ranked Wipro will report its earnings for the Oct-Dec period on January 19. The formation of the committee of directors caused a lot of heartburn for Sikka, Mint had reported on 21 August.

Sikka left abruptly in June following criticism from several executives, led by co-founder Narayana Murthy, over strategy and alleged corporate governance lapses. They have created something which will last for a very long time.

"The priority, at this minute, is to connect with people and clients", he said.

When asked on how he will manage this equation, Parekh said he will be deeply connected with the founders.

Analysts will watch how Parekh steers Infosys through the transition and rebuilds Infosys to help the company get back its mojo.

Infosys explained that during the December 2017 quarter, it had signed an Advance Pricing Agreement with the USA administration that had led to reversal of income tax expense provision of Rs 1,432 crore.