Kicking off the earnings season, IT major Infosys reported a 2.4% on year jump in profit for the quarter ended March 31 to Rs 3,690 crore. This is the first quarter since new chief executive officer and managing director Salil Parekh took over the reins from Vishal Sikka.
Kicking off the earnings season, IT major Infosys reported a 2.4% on year jump in profit for the quarter ended March 31 to Rs 3,690 crore. Infosys had reported a PAT (Profit After Tax) of Rs 3,603 crore in Jan-March 17 period. The results also assume significance as it’s the first quarter since new chief executive officer and managing director Salil Parekh took over the reins from Vishal Sikka. Revenue increased by 5.6 percent to Rs 18,083 crore in the current fiscal. The company said that FY 19 revenue guidance in constant currency at 6%-8%; FY 19 operating margin range guidance at 22%- 24%.
On an yearly basis, Infosys has reported revenue of Rs 70,522 crore a yoy jump of 3%, and 5.8% in constant currency terms. The operating profit came in at Rs 17,148 crore for the year ended March-18, registering a 1.5% growth on year. The total net profit reported for the year was Rs 16,029 crore, a 11.7% growth on year. Revenues are expected to grow 8.2%-10.2% in INR terms based on the exchange rates as of March 31, 2018, Infosys said. Notably, the results represent a decline of 28.1% on quarter as in the previous quarter net profits included positive impact of Rs 1,432 crore on account of conclusion of an APA with the US IRS, the company said.
The results were seen to be largely in line with estimates, as it was seen as a weak quarter for IT companies in general. Earlier, analysts had expected the IT major to report a growth of 1-2 per cent in revenue sequentially in constant currency terms and 2-2.5 per cent in dollar revenue on quarter. “ EBITDA margin is expected to rise 30bps q-o-q due to absence of wage hikes and operational efficiencies negating marginal impacts of ramping of US workforce and rupee appreciation. Guidance for FY19, CEO’s strategy and long term roadmap for Infosys and deal wins will be key monitorables,” Edelweiss had said in a report.
On similar lines, ICICI Securities had expected rupee revenue to grow 1.5 per cent to Rs 18,065.3 crore. “EBIT margins may remain flat QoQ at 24.3 per cent as cross currency benefit gets partially offset by rupee headwind,” the brokerage said in a report. Foreign brokerage Citi expects Infosys to guide for 5.5-7.5 per cent revenue growth in constant currency terms and 6.5-8.5 per cent in dollar terms. Anything lower will disappoint the Street, it said in a note. Notably, the company has announced FY19 guidance.