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Last Updated : Oct 11, 2019 04:42 PM IST | Source: Moneycontrol.com

Infosys Q2 profit rises 5.8% QoQ; ups FY20 constant currency revenue guidance to 9-10%

The management also revised its full-year constant currency revenue growth guidance to 9-10 percent from 8.5-10 percent earlier.

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Infosys reported a 5.8 percent sequential growth in Q2 FY20 with its net profit at Rs 4,019 crore. The management, on October 11, also revised its full-year constant currency revenue growth guidance to 9-10 percent, up from 8.5-10 percent earlier.

Revenue during the quarter rose 3.8 percent QoQ to Rs 22,629 crore. The same in dollar terms rose 2.5 percent at $3,210 million, in line with a CNBC-TV18 poll of $3,220.7 million.

Growth in constant currency terms was 3.3 percent QoQ, the company said in its BSE filing. The year-on-year increase in dollar revenue growth was 9.9 percent and 11.4 percent in constant currency in Q2.

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Infosys signed $2.8 billion worth of deals during the September quarter.

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

Earnings for the IT major largely matched analyst expectations. According to a poll of analysts conducted by CNBC-TV18, constant current revenue growth was estimated at 3.5 percent, profit at Rs 4,008 crore and revenue at Rs 22,643 crore.

The company said digital revenues in Q2 FY20, at $1,230 million (38.3 percent of total topline), registered a year-on-year growth of 38.4 percent and sequential growth of 10.7 percent in constant currency.

The stock rallied 10 percent in the September quarter and 22 percent year-to-date. It closed on October 11 higher by four percent.

Infosys maintained its full year EBIT margin guidance at 21-23 percent.

"We saw expansion in operating margins during the quarter driven by improvement in operational parameters and cost efficiencies," Nilanjan Roy, CFO said.

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

A poll of analysts conducted by CNBC-TV18 had indicated EBIT at Rs 4,856 crore and margins at 21.45 percent for Q2.

Infosys added 2 clients in $50 million category and 13 in $1 million band.

The IT company's standalone attrition rate declined to 19.4 percent in Q2 against 21.5 percent June quarter and consolidated attrition rate also dropped to 21.7 percent from 23.4 percent QoQ, driven by focus on enhanced employee value proposition.

The company declared an interim dividend of Rs 8 per share for the quarter.

Infosys said it had completed its share buyback of Rs 8,260 crore on August 26, 2019. With this, the company completed the additional capital return program of upto Rs 13,000 crore announced in April 2018, it added.

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First Published on Oct 11, 2019 04:10 pm
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