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Last Updated : Oct 11, 2019 05:37 PM IST | Source: Moneycontrol.com

Infosys Q2 key takeaways: Earnings meet Street expectations; company raises growth guidance

The company has declared an interim dividend of Rs 8 per equity share. The record date for dividend is October 23 and payment date is October 30, 2019.

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IT major Infosys released its second-quarter numbers on October 11 with growth in both earnings before interest and tax (EBIT) and net profit, in line with Street estimates.

"Our performance was robust on multiple dimensions – revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition," Salil Parekh, CEO and MD said.

Here are the key takeaways from Infosys' Q2 report card

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Growth guidance raised: The company raised its FY20 growth guidance to 9-10 percent from 8.5-10 percent earlier. However, The EBIT margin guidance was maintained at 21.23 percent.

Revenue rose QoQ: Revenue during the quarter rose 3.8 percent QoQ to Rs 22,629 crore. In dollar terms, the revenue rose 2.5 percent to $3,210 million, in line with a CNBC-TV18 poll of $3,220.7 million. The core revenue, however, declined about 2 percent year-on-year (YoY).

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Constant currency revenue improved: The company registered a 3.3 percent QoQ and 11.4 percent YoY constant currency (CC) growth during the second quarter. CC growth in digital came at 38.4 percent YoY.

Segmental revenues stayed stable: Barring retail (down 0.6 percent YoY) and others (down 0.7 percent YoY), the revenue of all segments grew during the second quarter.

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Operating performance improved: Operating performance was slightly ahead of analyst estimates as earnings before interest and tax (EBIT) grew 9.9 percent sequentially to Rs 4,912 crore and margin expanded 120 bps QoQ to 21.7 percent for the quarter ended September 2019.

Attrition rate declined: Standalone attrition rate declined to 19.4 percent in Q2 against 21.5 percent in the June quarter. The consolidated attrition rate also dropped QoQ to 21.7 percent from 23.4 percent QoQ, driven by the focus on an enhanced employee value proposition.

Geographic growth drivers remained steady: India, North America and Europe remained the drivers of growth. Rest of the world market, however, showed degrowth.

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Dividend: The company declared an interim dividend of Rs 8 per equity share. The record and payment dates for dividend have been fixed at October 23 and October 30, 2019, respectively.

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First Published on Oct 11, 2019 05:37 pm
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