Infosys Q1 net profit beats Street estimates, revenue guidance raised

infosys

HIGHLIGHTS

  • Infosys on Friday reported a 1.4 percent growth in its net profit in April- June quarter
  • The net profit stands at Rs 3,483 crore as compared to Rs 3,436 in the same period last year
  • Infosys share prices went up after the results

NEW DELHI: India’s second-biggest software services exporter Infosys on Friday reported a 1.4 percent growth in its net profit at Rs 3,483 crore for the April-June quarter. The IT major overshot first-quarter profit estimates. The company said it lost one client in its $100 million categories during the quarter from the previous quarter.

Analysts on an average had estimated a consolidated net profit of Rs 3,439 crore for the quarter ending June, according to Thomson Reuters data.

Bengaluru-headquartered Infosys had posted a consolidated net profit of Rs 3,436 crore in the same quarter last year.

Infosys’ consolidated revenue from operations rose about 1.8 per cent to Rs 17078 crore in the reporting quarter.

Some analysts had predicted a fall of as much as 5 per cent in the growth figures of Infosys. However, unlike its rival, Tata Consultancy Services (TCS), which had declared its results on Thursday, the Vishal Sikka-led IT company turned the tides on these expectations.

The IT behemoth raised its dollar revenue guidance, which is seen as a positive by the Street. Infosys raised dollar revenue guidance to 7.1-9.1 per cent for the year, against its April forecast of 6.1-8.1 percent.

At the operating level, Infosys reported a margin of 24.1 per cent vs 24.6 per cent in the March quarter. Infosys maintained FY18 revenue guidance in constant currency. At the end of the previous quarter (January-March) Infosys had a revenue growth guidance of 6.5-8.5 per cent for FY18 in constant currency. It had also forecast operating margin at 23-25 percent for the current fiscal year ending March 2018.

The dollar revenue of Infosys, which is closely watched by analysts and investors, grew 3.2 per cent in reported terms and 2.7 per cent in constant currency terms sequentially to $2,651 million.

Infosys CEO (Chief Operating Officer) Vishal Sikka said: “Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts – revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results. I am encouraged by the uptick in revenue per employee for six quarters in a row, and the strong momentum in our new high-growth services and software, as we accelerate our focus on innovation-led growth.”

The IT giant said it had broad-based growth across geographies and industry segments. “Our initiatives on operational discipline led to record levels of utilisation and better realisation during the quarter.” COO (Chief Operating Officer) Pravin Rao said.

The markets cheered the Infosys first quarter earnings, as the software giant’s shares went up nearly 2 per cent to Rs 995.35, post the results announcement. The broader market in comparison was trading flat.

Source: Times Of India

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