Infosys Stock Up On Positive Earnings

Bengaluru, India-based Infosys saw its stock price rise 6.3 percent on reports of higher earnings in the most recent quarter.

The company hosted its third-quarter earnings call Friday morning, in which it said revenue was up 8.4 percent to $2.98 billion compared with the year- ago quarter’s revenue of $2.75 billion.

“We feel the performance is strong,” Salil Parekh, Infosys CEO, told investors. “But I’m never really satisfied because there’s always more to do. We want to make sure we keep our focus on that to make sure we have larger and larger deals both in core services and in digital.”

Parekh said the company saw “increased client relevance” during the quarter, which saw double-digit 10.1 percent year-on-year growth in on a constant currency basis. He said the company had large deals come in at $1.57 billion, which “gives us confidence entering 2019.”

The company’s $942 million in digital business this quarter accounted for 31 percent of total sales, and the company saw hefty growth in that category of 33 percent year over year.

Earnings per share declined $0.12, or 33.9 percent, last quarter year over year.

“Volume growth was strong and revenue productivity was stable despite Q3 being a seasonally weak quarter. We had good growth across geographies and large business segments”, said Pravin Rao, COO, in a statement. “Attrition declined during the quarter and we are continuing on the path of increased interventions and employee engagements to reduce it further.”

Infosys completed its acquisition of Fluido during the third quarter as well. Fluido is the leading Salesforce adviser and consulting partner in the Nordic region and a recognized leader in cloud consulting, implementation and training services.

The company’s headquarters are in Espoo, Finland, and it has offices in Finland, Denmark, Sweden, Norway and Slovakia. Fluido elevates Infosys’ presence across the Nordic region with developed assets and deep customer relationships, the company said in September, when the deal was announced. The move to buy Fluido was designed to make Infosys a leading Salesforce enterprise cloud services provider and help give customers “unparalleled cloud-first transformation,” the company said in a statement.