Infosys: buoyant about growth despite softness in insurance

Apr 15 2016 03:05 PM
Infosys: buoyant about growth despite softness in insurance

Infosys is confident of credit increasing 11.5-13.5 % this fiscal despite softness in segments like insurance, energy and telecom. The Bengaluru-based firm Infosys, whose credits grew 13.3 % in 2015-16, said, “its guidance was based on large deal wins, a strong pipeline and innovative initiatives being undertaken”

Vishal Sikka (Infosys CEO )said, "... we had (USD) 1.9 billion in 2014-15 and we did more than $ 2.7 billion in 2015-16, so we are very happy with the large deal performance there and obviously, that sets a very good base for future. So, when I look at the trajectory of innovation initiatives, the large deal wins and the pipeline that we see, we feel good about future,"
On Friday the country's second-largest software services major reported a 16.2 % growth in consolidated net profit at Rs 3,597 crore while revenue was up 23.4 % at Rs 16,550 crore for the quarter ended March 31, 2016.Infosys said, “it expects revenue for 2016-17 to grow in the range of 11.5-13.5 per cent in constant currency and 11.8-13.8 per cent in US dollar terms, in line with industry body Nasscom's estimate of 10-12 per cent for the fiscal”

Infosys COO U B Pravin Rao said, “the company is seeing some softness in the insurance segment”
He aforesaid, "This quarter, banking, financial services and insurance (BFSI) grew at 0.2 per cent on constant currency basis, but if you ignore the insurance piece, the rest of the business grew at about 1.6 per cent... So, we are seeing tremendous amount of traction and momentum excluding insurance. We are optimistic about BFSI,"

Rao said, “ BFSI (including insurance) grew about 11.3 per cent and was up about 15.6 per cent excluding insurance”

Sikka said, "We are starting to see (growth) and it will take time, but we are not worried in the BFSI segment at all,"

"Energy continues to be under stress, telecom and also parts of retail," he said, adding that industries are also undergoing "deep-rooted transformation" based on the power of digital technology, cloud and artificial intelligence.

He further added, "We are extremely well-suited in this area... Regardless of the challenges, I am optimistic and we have the best in front of us,"