Infosys profit rises 3.3% as companies outsource more

Bengaluru: Infosys Ltd. earnings rose 3.3 per cent as the India-based software-services provider won more contracts.

Net income increased to Rs31 billion (Dh1.8 billion, $487 million) in the three months ended March, the company said in a statement on Friday. That compares with the Rs31.7 billion median of 34 analysts’ estimates compiled by Bloomberg.

Infosys missed estimates for the first time since Chief Executive Officer Vishal Sikka took charge in August with a promise to retrain employees and apply technologies including artificial intelligence to meet the clients’ needs. The former SAP AG executive is also expected to unveil today his strategy for boosting growth.

“Under the new CEO, the focus is now on being more relevant to clients,” Abhiram Eleswarapu and Kumar Rakesh, analysts at BNP Paribas SA in Mumbai, wrote in an April 8 report. “The strategic and capital allocation plans, which could outline long-term growth and margin targets, and lay out a road map for cash use for potential acquisitions” could also spur the stock, Eleswarapu and Rakesh wrote.

Sales rose 4.2 per cent to Rs134.1 billion, compared with the Rs138.9 billion median of 35 analysts’ estimates.