Infosys beats street estimate with jump in Q1 net profit; secures deals worth this much amid pandemic

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Updated: Jul 15, 2020 7:21 PM

Infosys recorded a net profit of Rs 4,272 crore in Q1 FY20, which is a growth of 12.4 per cent from Rs 3,802 crore in the same duration last year.

infosys, infosys results, infy, it companyInfosys signed $1.74 billion worth of large deals in the three months to June 30.

India’s information technology giant Infosys earned a profit that beat analyst estimates for the fiscal first quarter. Infosys recorded a net profit of Rs 4,272 crore in Q1 FY20, which is a growth of 12.4 per cent from Rs 3,802 crore in the same duration last year. Even as the global businesses have been impacted due to the coronavirus pandemic, the IT major managed to garner profits by securing large client deals during the global lockdown. The firm signed large deals worth $1.74 billion in the three months to June 30.  

Infosys’ revenue also grew 8.5 per cent to Rs 23,665 crore in the quarter ended-June. The IT-firm has further expected its annual revenue to grow by up to 2 per cent in constant currency terms. Earlier in April, Infosys did not provide a revenue outlook for FY21 due to emerging uncertainty from the pandemic. On the quarterly results, Infosys CEO and MD Salil Parekh said that the firm’s confidence and visibility for the rest of the year are improving, driven by Q1 performance and large deal wins.

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Meanwhile, like other service sectors, India’s software industry too struggled due to low client spending and slow business activity, but, Infosys and Wipro recorded higher earnings in the quarter.  Net profit of Wipro rose 2.8 per cent over the previous quarter to Rs 2,411 crore in three months ended-June. However, the largest IT firm TCS had to face a severe drop in net profits in the quarter. TCS Q1 net profit dipped 13.81 per cent to Rs 7,008 crore. The firm’s CEO and MD Rajesh Gopinathan had said that the revenue impact of the pandemic played out broadly along the lines the firm had anticipated. 

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