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Infosys returns to high growth path: Sikka | Canindia News

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Infosys returns to high growth path: Sikka

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Bengaluru, July 21 (IANS) Software major Infosys has turned around to get back to high growth path, thanks to a slew of technology and operational moves, said chief executive Vishal Sikka.

“We are seeing the impact of initiatives taken over the last three-four quarters on technological and operational fronts, resulting in highest revenue growth of seven percent in 15 quarters and volume growth of 5.4 percent in 19 quarters, in first quarter of this fiscal,” Sikka told reporters here.

Asserting that the company was on track to achieve a revenue target of $20 billion it had set for 2020, he said though it (target) was ambitious, it was possible through organic and inorganic growth and innovation in products and services.

“Automation, artificial intelligence and designing in software services drive efficiencies and improve performance of our global clients in their operations.”

Infosys is also working towards achieving 30 percent operating margin and about $80,000 productivity per employee annually.

“We intend to achieve $1.5 billion revenue through mergers and acquisitions and grow in double digit (13-14 percent) annually over the next five years to touch $18.5 billion in organic growth,” said Sikka.

On the decline in revenue and net profit in dollar terms for the quarter, Infosys chief financial officer Rajiv Bansal said employee engagements, promotions, wage hikes and currency volatility impacted its operating margin by one percent sequentially to 24 percent from 25 percent in last quarter.

“While we gained $23 million in previous quarter due to rupee depreciation, we lost $3 million in this quarter due to dollar depreciating against all currencies, including rupee.”

The company plans to hire more techies on campus and off campus as per its growth strategy and reverse the attrition rate.

“Our hiring will be in line with our business needs in the remaining three quarters of this fiscal, as we have been able to reverse attrition rate and retain as many employees,” he said.

Chief operating officer U B. Pravin Rao said pricing continued to be under pressure in existing lines of service.

“Due to decline in oil prices, discretionary spending in the energy sector is challenging and our revenue from this sector will be under pressure. With Iran expected to resume exports, oil prices will be under pressure, as they had gone below $50 per barrel,” he said.

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