Infosys: Good results, even better guidance

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October 15, 2020 7:10 AM

Infosys said it would increase compensation across the board from January 2021 and would pay out 100% of variable pay this year, which could have some impact on margins going forward.

The IT major expects revenues this year, in constant currency, will go up by 2-3% rather than the estimated 0-2%.The IT major expects revenues this year, in constant currency, will go up by 2-3% rather than the estimated 0-2%.

After a stellar performance in the September quarter, in which it signed deals worth $3.5 billion, Infosys Technologies believes it will do better this year than it had earlier expected.

The IT major expects revenues this year, in constant currency, will go up by 2-3% rather than the estimated 0-2%.

Net profits in Q2FY21 were up a sharp14.4% sequentially at Rs 4,845 crore while operating income rose 16.1% to Rs 6,228 crore. Rupee revenues grew 3.8% q-o-q while margins jumped 2.7% q-o-q to 25.3%.

CEO and MD Salil Parekh said, “Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% y- o-y revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues.”

Infosys said it would increase compensation across the board from January 2021 and would pay out 100% of variable pay this year, which could have some impact on margins going forward.

Even though discretionary spends remained patchy, companies that were focused on digital transformation, vendor consolidation and cloud were driving growth for Infosys, the top management said on a call.

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