Indian giant Infosys' Q1 Revenue Growth rose 2.2% qtr/qtr (10.9% yr/yr) in $ terms; 1.7% (12.1% yr/yr) in constant currency as it found big deals slower to yield revenues. It added three clients in the $100m+ category bring its total here to 17. It remains a strong player in the Euroepan consulting and integration market.
"We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1," said Dr. Vishal Sikka, CEO. "Despite this, I am very encouraged by our progress in the execution of our strategy. We launched Infosys MANA, our AI based approach to helping clients continuously renovate their business processes and have already delivered on first client successes.”
It continued to see strong momentum in large deal wins, he says “in which we are bringing the best of our Renew-New strategy to every deal; and we continued to see growth in our delivery services due to their renewal on the basis of Zero Distance, Design Thinking and automation. Going forward, we will continue our strong focus on our long-term goals and vision of transforming Infosys where open, intelligent technology amplifies people and frees them to innovate in a culture of learning and collaboration, while bringing operational excellence and cost discipline to every aspect of our business.”
"Automation continues to be a core lever in the renewal of our traditional service offerings." said U B Pravin Rao, COO. "We are making impactful internal process changes through our simplification initiatives with a focus on better employee experience and improved productivity," he added.
The outlook (consolidated) for the fiscal year ending March 31, 2017, under IFRS, is for revenues expected to grow 10.5% -12.0% in constant currency.