India's second largest IT giant Infosys reported Q1 results in-line with estimates as net profit came in at Rs 3,802 crore; implying a 5.3% jump on-year.
India’s second largest IT giant Infosys reported Q1 results in-line with estimates as net profit came in at Rs 3,802 crore; implying a 5.3% jump on-year. Earlier, an ET Now poll had estimated net profit at Rs 3,730 crore. The firm had reported a net profit of Rs 3,612 crore in the quarter ended June 30,2018. Infosys has reported a strong revenue growth of 14% to Rs 21,803 crore. On a quarterly basis, the revenue registered a jump of 1.2%. The firm had reported total revenue at Rs 19,128 crore in the comparable quarter previous fiscal. Notably, the firm has raised its revenue growth guidance to 8.5%-10% in constant currency terms, while maintaining operating margin guidance at 21-23% in FY20. We bring to you key figures in a nutshell.
Infosys Q1 net profit jumps 5.3% on year to Rs 3,802 crore; key figures in a nutshell
- Infosys Q1 net profit came in at 5.3% higher at Rs 3,802 crore. The firm had reported a net profit of Rs 3,612 crore in the quarter ended June 30,2018.
- Infosys has reported a strong revenue growth of 14% to Rs 21,803 crore, as compared to Rs 19,128 crore in the comparable quarter previous fiscal.
- The IT major has increased FY20 revenue growth guidance to 8.5-10% in constant currency terms, while maintaining FY20 operating margin guidance in range of 21-23%.
- The operating profit came in at Rs 4,471 crore, registering a decline of 1.5% on-year and 3.2% as compared on a quarterly basis. The operating margin was 20.5%.
- The Basic EPS was Rs 8.83, implying a growth of 6.2% on-year and decline of 5.8% as compared on a quarterly basis.
- Infosys said that the Company is on track towards completing its previously announced share buyback program totalling to Rs 8,260
crore. The company has till date bought back shares worth Rs 5,934 crore.
- “Effective from Financial year 2020, the company expects to return approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any,” Infosys said.
- Infosys COO UB Pravin Rao noted, “We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise. Large deal TCV was highest ever at $2.7 billion. Segment growth was robust with all large regions and most verticals growing at double digits yoy in constant currency.”
- CEO’s take– “We had a strong start to FY 20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships,” Salil Parekh, CEO and MD at Infosys said.