Infosys Q2 profit up five pct; rupee revenue rises to 3.14 percent

IT solutions provider Infosys reported a rise of 4.9 percent to Rs. 3,606 crore in the July-September quarter, thereby standing up to the analysts' expectations.

The company's rupee revenue rose 3.14 percent to Rs. 17,310 crore and dollar revenue was up 3.4 percent at USD 2,587 million on sequential basis, which were in line with estimates.

The country's second largest IT company slashed its revenue guidance for FY17 from 10.5-12 percent to eight to nine percent.

"We focused on strong execution in Q2 with core IT services business showing

good progress on the strength of innovation and operational initiatives," said Infosys CEO Vishal Sikka.

"We remain focused on executing our strategy and increasing momentum of software plus services model," he added.

Volume growth during the quarter was at four percent. Utilization excluding trainees improved by 200 bps sequentially to 82.5 percent and including trainees went up by 120 bps to 77.7 percent.

"Operating cash flows for the quarter were healthy and we effectively navigated a volatile currency environment through prudent hedging," said Infosys CFO M.D. Ranganath.

Infosys has also declared an interim dividend of Rs. 11 per equity share to its shareholders.