IT Infosys important on Friday recorded a net gain of Rs. 3,612 million rupees for the period from April to June, without analysts’ estimates. That marked a decrease of 2.1 percent in net profit over the previous quarter, but an increase of 3.7 percent compared to the previous year. Analysts, on average, expected a net profit of Rs. 3,740 crore, according to Thomson Reuters data. Infosys, the second largest software exporter in the country, posted a net profit of Rs. 3,690 million rupees for the quarter ending March 2018 and Rs. 3,483 million rupees for the quarter ended in June 2017. The Infosys board also approved the issuance of a free capital stock for each shareholding (1: 1 bonus issue), the company said in a regulatory document.
Infosys recorded revenue growth of 5.8 percent on a quarter-on-quarter basis and 12 percent on an annual basis of Rs. 19,128 crore for the quarter under review. In terms of dollars (constant currency), Infosys reported an income of $ 2,831 million in Q1. This marked a quarter-on-quarter growth of 0.9 percent and a year-on-year increase of 6.8 percent.
“The solid performance of revenues and margins in this quarter shows that our double emphasis on Agile Digital and basic services driven by Artificial Intelligence (Artificial Intelligence) is resonating with our customers,” said Salil Parekh, CEO and CEO of Infosys.
Infosys said it recorded a reduction in fair value amounting to Rs. 270 crore with respect to the business of Panaya. Infosys announced in February this year the acquisition of the American Panaya.
“With our Agile Digital business growing sequentially at 8 percent in constant currency and increasing our large profits to more than one billion dollars, we see good traction in the market.”
The big winnings exceeded one billion dollars, of which more than 40 percent came from the financial services business, Infosys said. Earnings per share (EPS) of the IT major grew 9.1 percent year-on-year. The second largest exporter of software services in the country maintained the revenue guidelines for the fiscal year that ended in March 2019 by 6-8 percent in constant currency terms. The operating margin guide FY19 has also remained at 22-24 percent.
For the financial year ended March 31, 2018, Infosys had reported an increase of 11.7 percent in its consolidated net profit in Rs. 16,029 crore
Before the June quarter results, Infosys shares closed 1.12 percent higher in Rs. 1,309.10 on the Bombay Stock Exchange (BSE).
Rival Tata Consultancy Services (TCS) had published this week a net gain of Rs. 7,340 crore for the June quarter.