April 17, 2016 7:46 pm | Updated 5 years ago.
India’s foremost software exporter, Infosys, recorded a 17% increase in its revenue for the financial year ending in March 2016.This rise in revenue is attributed to the new CEO of Infosys Vishal Sikka. Shares of Infosys have also recorded a jump of 49% since Sikka took over the helm of affairs. The company also recorded a rise of 9.4% in their net profits in the fiscal year ending in March 2016. Infosys envisages that their revenue will touch the double digit mark in the current fiscal year.
The biggest hurdle in Infosys growth trajectory is the slump in the banking sector in the US which accounts for almost 28% of its sales. As reported, major banks in the US and Europe recorded nearly 30% fall in their profits in the very first quarter. As their earnings decline, banks will lower their investment in the IT sector. This issue is also likely to affect the entire Indian software sector consisting of Infosys, Tata Consultancy, and Wipro. These companies providing services to financial institutions are surely going to feel the pain.
Date of Publication: April 15, 2016