Infosys ups FY22 sales guidance to 17.5%, beat Street estimates in July-September earnings

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October 14, 2021 4:45 AM

Infosys posted a net profit of Rs 5,421 crore, up 4.3% on a sequential basis. Bloomberg consensus estimate had pegged the net profit at Rs 5,288 crore. Revenues at Rs 29,602 crore was up 6.1% compared to the preceding quarter. Bloomberg estimate was of Rs 29,365 crore.

On the operating margin front, Infosys saw a sequential decline of 10 bps to 23.6% mainly due to wage hikes, but it was still within the guidance provided by the company.On the operating margin front, Infosys saw a sequential decline of 10 bps to 23.6% mainly due to wage hikes, but it was still within the guidance provided by the company.

The country’s second-largest software services exporter, Infosys on Wednesday beat Street estimates on all the fronts in its July-September earnings. The company also raised its full-year revenue guidance to 16.5-17.5% from 14-16% projected earlier on the back of continued strong business pace. The revenue guidance is higher than analysts’ expectations. The company has, however, retained its operating margin guidance at 22-24%.

Infosys posted a net profit of Rs 5,421 crore, up 4.3% on a sequential basis. Bloomberg consensus estimate had pegged the net profit at Rs 5,288 crore. Revenues at Rs 29,602 crore was up 6.1% compared to the preceding quarter. Bloomberg estimate was of Rs 29,365 crore.

On the operating margin front, Infosys saw a sequential decline of 10 bps to 23.6% mainly due to wage hikes, but it was still within the guidance provided by the company.

The company’s board also approved an interim dividend of Rs 15 per share. “Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings,” Salil Parekh, CEO and MD, said, adding “Given this continued momentum we have further increased our revenue growth guidance to 16.5%-17.5%”.

During the quarter, Infosys recorded a 6.3% growth in topline in constant currency basis. With clients continuing to spend on digitalisation, the company won deals worth $2.15 billion during the quarter.

“Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimisation and operating leverage. We will continue to invest in our employees to remain a preferred employer-of-choice and seamlessly fulfill client demand”, Nilanjan Roy, chief financial officer, said.

The attrition rate, however, increased to 20.1% compared to 13.9% in the previous quarter.

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