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Infosys Net Profit Declined by 2.2%

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India’s second-largest IT services company Infosys said its consolidated net profit declined by 2.2 per cent to Rs 4,019 crore for the July-September 2019 quarter.

This is against a net profit of Rs 4,110 crore in the same period last fiscal, Infosys said in a regulatory filing.

The Bengaluru-based company’s revenue rose by 9.8 per cent to Rs 22,629 crore in the quarter under review from Rs 20,609 crore in the year-ago period. In constant currency terms, this translates into an 11.4 per cent increase.

Infosys also raised the lower-end of its FY2019-20 revenue guidance and the revised forecast now stands at 9-10 per cent growth in constant currency terms.

At the beginning of the fiscal, Infosys had said it expects revenue growth of 7.5-9.5 per cent for FY2019-20. Subsequently, while announcing its first-quarter numbers, the company raised its revenue growth guidance for the fiscal to 8.5-10 per cent.

“Our performance was robust on multiple dimensions – revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition,” Infosys CEO and MD Salil Parekh said.

All these are clear signs that the company is progressing well in its journey of client-centricity and maximising value for its stakeholders, he added.

In dollar terms, net profit was at USD 569 million while revenue was at USD 3.21 billion in the said quarter.

The results come a day after larger rival, Tata Consultancy Services announced its second-quarter results. The Mumbai-based firm reported a 1.8 per cent rise in consolidated net profit at Rs 8,042 crore while its revenue grew by 5.8 per cent to Rs 38,977 crore.

In the September 2019 quarter, Infosys’ Digital revenues grew 38.4 per cent year-on-year to USD 1.23 billion, accounting for 38.3 per cent of its total revenues.

It has also declared an interim dividend of Rs 8 per share. Infosys announced its results after the close of trading hours. Its scrip had closed at Rs 815.70 apiece, up 4.19 per cent from the previous close on the BSE.

“We saw expansion in operating margins during the quarter driven by improvement in operational parameters and cost efficiencies. We took the first step towards implementation of our new capital allocation policy by increasing interim dividend by over 14 per cent compared to FY19,” Infosys CFO Nilanjan Roy said.

The company completed its share buyback of Rs 8,260 crore on August 26, 2019, wrapping up its additional capital return programme of up to Rs 13,000 crore announced in April 2018.

“Q2 witnessed another quarter of all-round growth in industry segments and geographies which is a testimony to our strong credentials and client relevance. Large deal wins were USD 2.8 billion. We are especially pleased by the reduction in attrition driven by our focus on enhanced employee value proposition,” Infosys COO Pravin Rao said.

During the September quarter, Infosys added 7,457 people to take its overall headcount to about 2.36 lakh. Its annualised consolidated attrition was lower at 21.7 per cent in the said quarter from 23.4 per cent in the June quarter.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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