How Did Infosys’s Major Business Segments Perform in Fiscal 1Q17?
In fiscal 1Q17, revenues for India-based IT firm Infosys (INFY) rose by over 10% year-over-year and by 2.2% quarter-over-quarter.
Jul. 19 2016, Published 3:40 p.m. ET
Revenues from the Telecom business rose
In fiscal 1Q17, revenues for India-based (EPI) IT firm Infosys (INFY) rose by over 10% YoY (year-over-year) and by 2.2% quarter-over-quarter. Revenues from the Telecom segment rose by 11.4% quarter-over-quarter, and revenues from its Manufacturing segment rose by 4.4%. Revenues from its Retail and CPG[1. Consumer-Packaged Goods] segment rose by 5.5%.
Infosys’s Transportation and Logistics business’ revenues rose by 9.3% quarter-over-quarter in the last reported quarter.
What impacted Infosys’s revenues in fiscal 1Q17?
According to Vishal Sikka, the CEO of Infosys, softness in the company’s top-line growth in fiscal 1Q17 was primarily driven by unanticipated headwinds in discretionary spending in consulting services. It was also due to slower project ramp-ups in some large deals that the firm had won in the earlier quarters.
This resulted in lower revenues from client engagements in businesses such as Life Sciences, as well as Energy and Utilities.
Major highlights in fiscal 1Q17
Driven by increased focus on expanding strategic client relationships, revenues from top clients for Infosys grew by 3.9% quarter-over-quarter in fiscal 1Q17. Plus, revenues for its top 25 clients rose by 4.4% quarter-over-quarter on a constant currency basis in fiscal 1Q17. The number of clients in the $100 million revenue bracket also rose from 14 to 17.
Sikka stated, “We have more work to do in growing the next tier of clients, and this will be a focus area for us going forward. We also added 95 new clients for the quarter.”
