Infosys Surges Over 7% On Beating Estimates In June Quarter

Shares of Infosys settled 7.24 per cent or 52.65 points higher on the National Stock Exchange after its earnings surpassed average earnings estimates compiled by Reuters in April-June quarter and raised revenue growth guidance for the current financial year. On the BSE, Infosys share price closed 7.20 per cent or 52.35 points higher. (Also Read: Infosys Beats Estimates In June Quarter With Rs. 3,802 Crore Profit)

Infosys, the country's second largest software services company on Friday reported net profit of Rs. 3,802 crore for the quarter ended June 30. That marked a decline of 6.76 per cent compared to the previous quarter, but beat analysts' estimates compiled by Reuters. Analysts on an average expected the Bengaluru-based IT company to report a net profit of Rs. 3,705 crore in the first quarter of financial year 2019-20.

Infosys' revenue from operations rose 1.23 per cent to Rs. 21,803 crore in April-June period, as against Rs. 21,539 crore in the previous quarter. Infosys guided for a revenue growth in the range of 8.5-10 per cent for financial year ending March 31, 2020 in constant currency terms, from 7.5-9.5 per cent.

In dollar terms, its revenue grew 2.3 per cent to $3,131 million. In terms of constant currency, the revenue grew 2.8 per cent on a sequential basis, said Infosys.

In the first quarter of the financial year 2019-20, the company's digital revenue, which comprises 35.7 per cent of total revenue, came in at $1,119 million in constant currency terms, marking a growth of 41.9 per cent compared to the corresponding period a year ago.

The company's operating profit or EBIT (earnings before interest and taxes) came in at $642 million, and operating profit margin stood at 20.5 per cent. The company maintained its financial year 2019-20 operating margin guidance at 21-23 per cent.

As of 10:26 am, Infosys shares traded 5.65 per cent higher at Rs 768.15, outperforming the Sensex which was up 0.33 per cent.