1. Infosys Q2 net profit rises 4.95% qoq to Rs 3,606 crore; cuts FY17 guidance to 8-9%

Infosys Q2 net profit rises 4.95% qoq to Rs 3,606 crore; cuts FY17 guidance to 8-9%

Infosys Q2 net profit: Infosys reported 4.95 per cent rise in net profit at Rs 3,606 crore for the quarter ended September 30, 2016 againt Rs 3,436 crore in the sequential quarter ended June 30, 2016

By: | New Delhi | Updated: October 14, 2016 7:30 PM
Infosys Infosys Q2 Profit: Infosys reported 4.95 per cent rise in net profit at Rs 3,606 crore for the quarter ended September 30, 2016 againt Rs 3,436 crore in the sequential quarter ended June 30, 2016. (Reuters)

Infosys reported 4.95 per cent rise in net profit at Rs 3,606 crore  for the quarter ended September 30, 2016 against Rs 3,436 crore in the sequential quarter ended June 30, 2016. Consolidated total income of the IT major increased by 3 per cent on quarter-on-quarter basis to Rs 18,070 crore for the quarter under review. It had reported a total income of Rs 17535 in the previous quarter ended June 30, 2016. Consolidated operating profit of the company jumped by 6.50 per cent qoq to Rs 4,309 crore from Rs 4,047 crore in the sequential quarter ended June 30, 2016.

Infosys has cut FY17 revenue guidance to 8-9 per cent against 10.5-12 per cent in constant currency terms. The company has declared an interim dividend of Rs 11 per share with face value of Rs 5. Record date for payment of dividend has been fixed for October 24, 2016 and the dividend will be paid on October 26.

“We focused on strong execution in Q2 with our core IT services business showing good progress on the strength of our innovation and operational initiatives. While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.” said Vishal Sikka, CEO.

ALSO READ: Infosys Q2: Target of hitting $20 bn revenue by 2020 stays intact, says Vishal Sikka

The company’s earnings per share rose to Rs 15.77 at the end Q2 against Rs 15.03 in the previous quarter. Infosys witnessed a revenue growth of 3.1 per cent on quarter-on-quarter basis in terms of rupee and 3.9 per cent qoq growth in constant currency terms.

Infosys witnessed a consolidated annualised attrition rate of 20 per cent. On a standalone basis attrition rate stood at 15.7 per cent. Gross employee addition during the quarter stood at 12,717, while 9,938 employees left the company. Thus, the net employee addition stood at 2,779.

The volume growth for Infosys during the second quarter was 4 per cent while the utilisation rate touched 82.5 per cent. These factors contributed the overall growth of Infosys. In terms of geographies, there was an all around growth with North America and Europe posting decent numbers. The India geography recorded a 29.1 per cent sequential growth. The financial services vertical recorded a growth of 4.6 per cent on a sequential basis much against the market expectations.

Infosys COO U B Pravin Rao said, “We had well-rounded growth during the quarter in our market segments. Our delivery and support teams executed well on their plans for resource management during the quarter, leading to an uptick in utilisation.”

Meanwhile, Infosys shares hit their fresh 52-week of Rs 996.15. At 9.57 am, the scrip was trading 2.95 per cent down at Rs 1021. Shares of Infosys opened the day at Rs 1060 and had touched a high and low of Rs 1080 and Rs 996.15, respectively, in trade so far.

Tags: Infosys
Please Wait while comments are loading...

Go to Top