Infosys Q1 earnings: India’s second largest IT behemoth Infosys has reported results for April-June quarter in line with street estimates, as net profit came in 3.7% higher on year to Rs 3,612 crore. Notably, the IT bellwether’s results come closing on the heels of TCS results from the IT pack. Earlier, HDFC Securities had estimated the company’s rupee revenue at Rs. 18,996 crore, a growth 11.2% on-year. IDBI Capital had forecasted a 11.8% growth on-year. We take a closer look at Infosys results, and bring you 7 key takeaways from the results.
Infosys Q1 Earnings: Key figures in a nutshell
- Net Profit came in at Rs 3612 crore implying a rise of 3.5% on year, including impact of Rs 270 crore on account of reduction in the fair value of Assets held for sale.
- Infosys reported total revenues of Rs 19,128 crore, implying 12% rise on year.
- Basic EPS at Rs 16.62 for the quarter ended June 30, 2018, including impact of `1.24 on account of reduction in the fair value of Assets held for sale.
- FY 19 revenue guidance in constant currency retained at 6%-8%; FY 19 operating margin guidance retained at 22%-24%.
- Infosys noted in the release that large deal wins crossed $1 billion, of which over 40% was from Financial Services.
- The digital revenues came in at $803 million (28.4% of total revenues), showing robust sequential growth of 8.0% on-year growth of 25.6% in constant currency terms.
- “We had broad-based financial performance on multiple fronts – RoE crossed 25%, Free cash flow was up 32% quarter on quarter and operating margins were at the upper quartile of our margin guidance. While we continue to make strategic investments to leverage the opportunities in Digital, our relentless focus on operational efficiencies continued in this quarter,” , said M.D. Ranganath, CFO of Infosys said.