Infosys had a decent Q2 FY19 in which the company witnessed steady execution, stable margins and strong deal wins.
The IT giant Infosys announced its second quarter earnings yesterday. Let’s do a 3 point analysis to figure out how it fared.
The quarter at a glace: Infosys reported revenue of $2,921 million quarter-on-quarter, and growth of 3.2 percentin reported currency and 4.2 percent in constant currency. However, in line with peers, the digital business grew much faster at 13.5 percent quarter-on-quarter and 3.5 percent year on year in constant currency and formed 31 percent of revenue. Financial Services and retail, with a total share of close to 49 percent, grew strongly. The performance of the manufacturing and Hi Tech segments was also supportive.
Operating margin: In the quarter gone by, Infosys reported an operating margin of 23.7 percent, which is the same as the previous quarter. The reason for this stability in operating margin is due to the implementation of a wage hike for its senior personnel, sub-contracting for its digital business, along with other expenses to counter attrition and higher spend in local markets and investments.
Key highlights of the quarter: The management reported 12 large deal wins from verticals of financial services, manufacturing and Hi Tech. Seven deals were from US, four from Europe and one from the Rest of the World.