Infosys Q1 earnings: The IT major maintained its revenue guidance for 2018-19
Infosys announced its earnings for the April-June quarter today. Net profit came in at Rs. 3,612 crore, missing analysts' estimates. Analysts had on on average expected a net profit of Rs. 3,740 crore, according to Thomson Reuters data. With that, Infosys became the second large cap IT company to report its Q1 results. The software services exporter kept its revenue growth projection unchanged at 6-8 per cent for the current financial year. The Q1 report card was the second under CEO Salil Parekh, who assumed charge in January this year. Infosys had posted a net profit of Rs. 3,690 crore over revenue from operations of Rs. 18,083 crore in the previous quarter. Infosys announced a 1:1 bonus, subject to regulatory and shareholder approvals. A 1:1 bonus means that the shareholder will get one share for each share held.
Here are the highlights of the Q1 earnings of Infosys:
Infosys reported gross addition of 17,709 to its workforce in the April-June period.
Infosys said it recorded a reduction in the fair value amounting to Rs 270 crore ($39.4 million) in respect of the Panaya business. Infosys had in February this year announced the acquisition of US-based Panaya. New Jersey-based Panaya provides cloud-based quality management services for enterprise applications. (Read more
Infosys said it added 70 new clients in the June quarter. With that, the number of active clients for Infosys stood at 1,214 as of June 30, 2018, it noted.
Infosys kept its operating margin guidance unchanged at 22-24 per cent for financial year 2018-19. (Read more
Infosys announced a 1:1 bonus for its shareholders. A 1:1 bonus means that the shareholder will get one share for each share held. (Read more
"With our Agile Digital business growing sequentially at 8 per cent in constant currency and increase in our large deal wins to over US$ 1 billion, we see good traction in the market," said Mr Parekh.
Infosys Large Deal Wins Cross $1 Billion; Emphasis On Core Services Resonating With Clients, Says Salil Parekh
"The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients," said CEO and MD Salil Parekh. Infosys said in a regulatory filing that its large deal wins crossed the $1 billion mark.
In dollar terms (constant currency), Infosys reported a revenue of $2,831 million in Q1. That marked a quarter-on-quarter growth of 0.9 per cent, and a year-on-year increase of 6.8 per cent.
Infosys reported a net profit of Rs 3,612 crore for the quarter ended June 2018, as against Rs 3,690 crore in the previous quarter. Revenue came in at Rs 19,128 crore, up 5.8 per cent on a quarter-on-quarter basis.
Benchmark stock indices Sensex and Nifty closed on a flat note, a day after government data showed retail inflation soared to a five-month high of 5 per cent in June. Infosys shares finished 2.2 per cent higher, leading IT stocks. The Nifty IT - an NSE index comprising IT stocks - finished with marginal gains. (Read more
rose nearly 3 per cent today, ahead of release of the company's Q1 report card. On the BSE, the Infosys share price hit an intraday high of Rs 1,331.35 during the session. At 3:27, Infosys shares were trading 2.3 per cent higher at Rs 1,324.05 on the bourse.
Infosys, the country's second largest IT services exporter, will report its earnings for the first quarter of the current financial year around 4:15 pm today. Brokerages expect Infosys to post a growth in revenue. (What to expect from Infosys today