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Infosys Ltd.

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Infosys’ second-quarter fiscal 2017 earnings came in line with the Zacks Consensus Estimate but improved 3.8% year over year. Decent revenue growth drove the bottom-line performance. Infosys added a significant number of clients during the quarter, which is expected to boost both the top and bottom lines. The company’s “Renew New” strategy has added to its strength and the solid traction of AikiDo service offerings and Zero Distance Program are expected to accelerate its growth momentum in the near term. However, factors like seasonality and stiff competition in the IT industry may continue to affect the company’s financials. Moreover, the sluggish global IT industry and currency volatility add to the company’s woes. Also, Infosys’ fixed-price and fixed-timeframe contracts expose it to risks of loss, arising from inaccurate estimations of project pricing.

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