Beating expectations, Infosys today reported 13 per cent jump in consolidated net profit for the third quarter to Rs 3,250 crore, helped by increase in business and clients from North America, as also from India.
However, Greyhound Research CEO Sanchit Vir Gogia believes that the growth of 3.4 per cent Q-o-Q in Indian rupees and 0.8 per cent in USD is sluggish.
“Infosys is not the only company that has been affected by the fluctuation in currency. Q3 is a seasonally weak quarter for all Indian IT services companies due to fewer billing days amid festive holidays in key markets – India, US and Europe,” he added.
While Vishal Sikka has done a great job in mapping the long term strategy, the market will look out for softer signs of improvement in short and medium term, he said.
“Key thing to look out for in the coming quarter is their utilisation and attrition rate. We believe that if Vishal can reduce attrition in the beginning of the quarter that will be a good start and a positive step towards winning internal confidence,” Gogia added.
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