Moneycontrol
Last Updated : Apr 13, 2018 06:09 PM IST | Source: Moneycontrol.com

Infosys sees FY19 constant currency revenue growth at 6-8% but cuts margin guidance

Infosys revised the EBIT margin guidance for FY19 to 22-24 percent from 23-25 percent (FY18) earlier.

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Country's second largest software services exporter Infosys expects its full year dollar revenue growth at 7-9 percent but lower EBIT margin guidance.

In constant currency, revenue growth is expected to be at 6-8 percent for the financial year 2018-19, the company said.

Revenue growth guidance was largely in line with analyst estimates but margin growth forecast was lower than expectations.

Infosys revised the EBIT margin guidance for FY19 to 22-24 percent from 23-25 percent (FY18) earlier.

"There was a disappointment on the margin guidance front as Infosys has lowered its EBIT margin range to 22-24 percent," ICICIdirect said in its note.

The margin growth forecast was lower than estimates may be due to compensation implementation with effect from April 1, 2018.

"During the quarter, we provided highest level of variable payouts in several years. We will be rolling out compensation increases for a large part of our workforce effective April , 2018," Pravin Rao, COO said.

Meanwhile, the company met its guidance on all fronts during the fiscal year gone by.

"FY18 revenues grew by 7.2 percent in dollar terms, 5.8 percent in constant currency terms, with operating margins at 24.3 percent," the IT firm said.

It had forecast FY18 dollar revenue growth in the range of 6.5-7.5 percent, 5.5-6.5 percent in constant currency and margin 23-25 percent.

The company said revenues from digital offerings were at USD 2.79 billion (25.5 percent of total revenues) for FY18 which grew at 3.6 percent sequentially in Q4 in constant currency terms.

Infosys Q4 profit dropped 28 percent sequentially to Rs 3,690 crore due to tax credit in the previous year.

"Q3 FY18 net profits included positive impact of USD 225 million on account of conclusion of an APA with the US IRS," it said.

Revenue during the quarter increase 1.6 percent to Rs 18,083 crore compared to previous quarter.

Dollar revenue during the quarter increased 1.8 percent and in constant currency the growth was 0.6 percent which was in line with estimates.
First Published on Apr 13, 2018 06:08 pm
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