Infosys FY 2016 revenue and profits rise
Financial systems vendor Infosys has revealed its revenue for the full year (FY) 2016 of $9.5 billion, an increase of 9.1% in US dollar terms; and 13.3% in constant currency terms.
Q4 revenue was $2.4 billion – a rise of 1.6% quarter on quarter in US dollar terms, or 1.9% in constant currency terms.
For the quarter and year ended 31 March 2016, the India-based company also reported a Q4 operating margin of 25.5%; an increase of 0.6% from its Q3 operating margin of 24.9%.
Operating profit was $2.3 billion for the full year, a year-on-year growth of 5.2%. For the same period, net profit was $2.05 billion: a year-on-year growth of 1.9%.
Dr. Vishal Sikka, CEO of Infosys, says it started the year “just” two quarters into a strategy to “transform” Infosys. Nothing specific was mentioned, but this plan involves “automation and innovation”.
He says the firm, as part of this strategy, is now starting to “show results” in client relationships and deals.
Infosys says its revenue guidance for FY 2017 is 11.5%-13.5% in constant currency and 11.8%-13.8% in US dollar terms.
This year has been busy for Infosys’ Finacle banking business unit.
Al Ahli Bank of Kuwait (ABK) picked Infosys’ Finacle suite to replace Misys’ products as part of its technology revamp.
Bank Leumi (UK), based in London and part of the Bank Leumi Group, announced it is replacing its existing corporate online banking system with Infosys’ Finacle e-banking solution. It will be interfaced to the bank’s long-standing core banking system, Misys’ Midas.
Albaraka, a Morocco-based microfinance institution, implemented Infosys’ Finacle core banking system, and customer relationship management (CRM) and wealth management solutions.
Reh goes away
However, less positive news came at the start of the year – as Michael Reh, a high-profile SVP at Infosys and head of the Edgeverve business (which includes the Finacle banking software unit) quit.
According to Sikka, Reh quit for personal reasons. Reh lives in Germany and has four little children, Sikka explained. The amount of travelling that was doing was “just too much and we have to find a solution to that problem”.
Reh’s travels take him all over the world, from India in the east to the US in the west. The US is a key focus for the vendor at present, with new clients added (e.g. Eastern Bank and Discover Financial Services), partnerships inked (e.g. with Payveris and Verizon), a hiring spree and a major marketing/sales push ongoing.
Reh joined Infosys in October 2014 from SAP, where he had spent 15 years. He was recruited shortly after the appointment of Sikka, who is also ex-SAP.
Reh was first head of the Finacle business at Infosys. When Finacle was merged with Edgeverve, Infosys’ newly established subsidiary (focused on cloud-based software and services) in H2 2015, Reh took on the leadership position in the combined entity.
In the year that followed Sikka’s and Reh’s arrival at Infosys, SAP experienced a major exodus of its senior management to its Indian rival. Within a year, 16 executives jumped ship.
It got to the point that Infosys suspended hiring SAP’s top executives until the end of 2015 – this was reported in September 2015.