Infosys Q2 consolidated net up 20.5% YoY at Rs 4,845 cr; ups FY21 guidance

Infosys on Wednesday reported a 20.5 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 4,845 crore for the quarter ended September 30, 2020 (Q2FY21). The information technology (IT) services major had posted a profit of Rs 4,019 crore in the year-ago period. On a sequential basis, profit grew 14.45 per cent.

The company's revenue came in at Rs 24,570 crore, up 8.5 per cent YoY and 3.8 per cent QoQ. In constant currency terms, revenues increased by 4 per cent on a sequential basis and 2.2 per cent YoY. In US dollar terms, revenues came in at $3,312 million, up 3.2 per cent YoY and 6.1 per cent QoQ.

Analysts at Edelweiss Securities had expected revenue to grow 3.9 per cent QoQ in constant currency terms and 5.4 per cent QoQ in US dollar terms at $3,289 million. In rupee terms, revenue was seen at Rs 24,172.4 crore, up 2.1 per cent QoQ and 6.8 per cent YoY while net profit was estimated at Rs 4,453.1 crore, up 4.2 per cent QoQ and 10.3 per cent YoY. CLICK HERE TO READ WHAT ANALYSTS HAD EXPECTED 

Meanwhile, operating profit  for the quarter under review was Rs 6,228 crore, a growth of 26.8 per cent YoY and 16.1 per cent QoQ. Operating margin stood at 25.4 per cent, up 370 basis points on a YoY basis, the company said in its press release. Infosys also announced an interim dividend of Rs 12 per equity share and fixed October 26, 2020 as the record date for interim dividend and November 11, 2020, as the payment date.

 

“Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues”, said Salil Parekh, CEO and MD. “Increase in revenue and margin outlook for FY 21 is due to the continued trust clients

have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally.”

Further, the company has revised upward its FY21 revenue growth guidance to 2 per cent - 3 per cent in constant currency while FY21 operating margin guidance has been revised upward to 23 per cent -24 per cent. The company signed deals worth $3.15 billion during the period and beat Street estimates.

Salary hike, promotions

While announcing the Q2 numbers, Infosys also said it will roll out salary increases and promotions across all levels, effective January 1. The company also said it will give 100 per cent variable pay along with a special incentive for Q2.

“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at $ 3.15 bn and attrition reducing to single digits”, said Pravin Rao, COO at the company.

Adding: “Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100% variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective January 1.”

Infosys Q2FY21 numbers