Infosys, announcing its first results under new CEO Salil Parekh, said its profits had been buoyed by a deal signed with the United States tax department.
"On account of the conclusion of an APA (Advance Pricing Agreement) with the US Internal Revenue Service during the quarter, net profit for Q3 increased", it added in the statement.
Infosys retained its earlier growth outlook, expecting dollar revenue to expand in the range of 6.5-7.5% in the year to 31 March, or 5.5-6.5% in constant currency terms, which eliminate the effects of exchange-rate fluctuations.
December-quarter sales rose 8 percent to $2,755 million from $2,551 million a year ago, and increased 1 percent from the previous quarter. Net profit was up 37.7 percent at Rs 5,129 crore due to lower tax expenses (see chart).
Infosys' contant currency revenue growth came in at 5.6% as on December 2017.
Murthy, who was President of the company since October 2016, has resigned citing personal reasons. Krishnamurthy was overseeing well over $1 billion of the company's annual revenue.
IT major on Friday declared its earnings for the third quarter.
"It is a privilege for me to be appointed as the CEO & MD of Infosys, helping our clients navigate the digital future and employees build new skills and capabilities". The formation of the committee of directors caused a lot of heartburn for Sikka, Mint had reported on 21 August. His predecessor Vishal Sikka quit late previous year after a long-drawn public fued with Infosys' founders.
Parekh gestures as addresses the media during the announcement of the company's quarterly results at its headquarters in Bengaluru, India, January 12, 2018. "This is a phenomenal company, started by people who have tremendous vision". They have created something which will last for a very long time. Mr. Parekh, 53, an ex-Capgemini veteran, said.
"The priority, at this minute, is to connect with people and clients", he said. Infosys will also be looking to firmly return its focus to business growth after a tumultuous year that ended with former CEO Vishal Sikka and much of his board leaving, to be replaced by Salil Parekh within months.
Infosys explained that during the December 2017 quarter, it had signed an Advance Pricing Agreement with the United States administration that had led to reversal of income tax expense provision of Rs 1,432 crore. Revenue from banking, financial services and insurance, a segment that brings more than a third of Infosys's revenue, inched up 0.3%.
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