Infosys chief Vishal Sikka remains confident of the IT major’s ability to fulfil its “aspiration” of touching $20 billion revenue by 2020, saying that performance in one quarter will not hold it back from reaching the milestone.
Infosys Ltd has posted a 13.4 per cent rise in net profit of Rs 3,436 crore for the quarter ended June 30, 2016 compared with Rs 3,028 crore for the quarter ended June 30, 2015.
The net profit was down 4.47 per cent when compared to the March quarter when it posted Rs 3,597 crore.
Infosys has posted revenues of Rs 17,535 crore in the first quarter, a 1.2 per cent increase when compared to the March quarter. When compared to the year-ago period, it was a 16 per cent increase.
However, it slashed the full-year revenue guidance to 10.5-12 per cent in constant currency terms, impacted by slower project ramp ups and macro economic scenario.
“In terms of the 2020 ambition, it doesn’t do anything to it. It is our aspiration, I believe that is the right direction, the right aspiration for the company to have...as I have always said it is not a goal,” Sikka said.
The company is on track of reaching the $20 billion milestone, he added.
“Our aspiration continues to be $80,000 (revenue per employee). So, the 2020 aspiration is still very much what it is and one 90-day cycle (one quarter) doesn’t hold us back on going after that,” he said.
As part of the 2020 plan, Infosys aims to expand its margins to 30 per cent from the current 24-25 per cent levels and generate $80,000 revenue per employee.
“We are on that trajectory. If you look at revenue per employee overall for the company, that has gone up slightly and that is the direct result of high margin non-linear growth that we see in new software areas as well as better utilisation and deployment of zero bench (to more or less erase the notion of bench),” he said.
The $9.5 billion firm expects acquisitions to bring in additional revenues of about $1.5 billion.
Infosys is also focusing on new services like design thinking, solutions in artificial intelligence and intellectual property-led businesses that is expected to contribute at least 10 per cent of its revenues.