Infosys net up 5.1% yearly, down 6.8% quarterly

Bengaluru, July 13 (IANS) Global software major Infosys on Friday reported Rs 3,798-crore consolidated net profit for the first quarter (Q1) of fiscal 2019-20, registering 5.1 per cent annual growth from Rs 3.612 crore in the same period a year ago.

Sequentially, however, net profit in Q1 declined 6.8 per cent from Rs 4,078 crore a quarter ago.

In a regulatory filing on the BSE, the city-based IT behemoth said consolidated revenue for the quarter under review (Q1) grew 14 per cent Year-on-Year (YoY) to Rs 21,803 crore from Rs 19,128 crore in the like period a year ago.

Sequentially, however, revenue for Q1 marginally grew 1.2 per cent from Rs 21,539 crore a quarter ago.

Under the International Financial Reporting Standard (IFRS), net income grew YoY 2.2 per cent to $ 546 million from $534 million in the same period a year ago but declined 6.8 per cent sequentially from $580 million a quarter ago.

Similarly, gross income grew 10.6 per cent YoY to $3,131 million in Q1 from $2,811 million in the same period year ago and up 2.3 per cent sequentially from $3,060 million a quarter ago.

Operating profit declined 1.5 per cent annually to Rs 4,470 crore for Q1 from Rs 4,537 crore a year ago and 3.2 per cent sequentially from Rs 4,618 crore a quarter ago.

"Operating margin declined 3.2 per cent annually to 20.5 per cent for Q1 from 23.7 per cent year ago and was flat (0.9 per cent) from 21.4 per cent a quarter ago," said the outsourcing firm in a statement here.

Under IFRS, operating profit declined 4.2 per cent annually for Q1 to $642 million from $670 million a year ago and 2.3 per cent from 658 million a quarter ago.

Operating margin in dollar terms declined 3.2 per cent YoY to 20.5 per cent for Q1 from 23.7 per cent a year ago and 2.3 per cent a quarter ago.

Addition of 70 new clients during the quarter has taken their total number to 1,336, against 1,279 a quarter ago and 1,214 a year ago.

"We had a strong start to the fiscal, with 12.4 per cent annual growth in constant currency and digital business of $1,119-million contributing 35.7 per cent to the total revenue," said Chief Executive Salil Parekh on the occasion.

The company added 906 techies during the quarter, taking the total headcount to 2,29,029 from 2,28,123 a quarter ago.

The addition for the last 12 months however, was 19,124 from 2,09,905 a year ago, with women accounting for 37 per cent in Q1 from 36.7 per cent a quarter ago and 36.5 per cent a year ago.

"The digital revenue growth has made us raise the revenue guidance to 8.5-10 per cent from 7.5-9.5 per cent projected in April for the fiscal," added Parekh.

The consolidated attrition rate, however, increased sequentially to 23.4 per cent in Q1 from 20.4 per cent a quarter ago and 23.1 per cent a year ago.

"We had a good quarter and continue to leverage our digital navigation framework to help clients build and nurture their live enterprise," said Chief Operating Officer Pravin Rao.

The company won a whopping $2.7-billion large deal in terms of total contract value in the quarter.

"Segment growth was robust with all large regions and most verticals growing at double digits YoY in constant currency," noted Rao.

Chief Financial Officer Nilanjan Roy said the company had revised its capital allocation policy upwards to distribute 85 per cent of free cash flows cumulatively over a 5-year period to improve shareholder's returns.

"The first quarter results and focus on operational efficiencies gives us confidence on revenue and margin guidance for the fiscal," added Roy.

The company's blue-chip scrip of Rs 5 face value gained Rs 6.25 at the end of Friday's trading on the BSE to close at Rs 727.10 against the Thursday's closing rate of Rs 720.85 and opening price of Rs 723.30.