Infosys slides after Q2 results

Infosys fell 2.80% to Rs 792.85 after the company released its Q2 results after trading hours on Friday, 11 October 2019.

On a consolidated basis, Infosys' net profit rose 4.55% to Rs 3,971 crore on a 3.78% increase in total revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019.

Ahead of the result announcement, the Infosys stock jumped 4.19% to end at Rs 815.70 on Friday.

The IT major declared an interim dividend of Rs 8 per share. The company's operating margin stood at 21.7% in Q2 September 2019 as against 20.5% in Q1 June 2019.

The firm increased lower end of FY 2020 revenue guidance. Revised guidance is 9%-10% in constant currency. It maintained FY 2020 operating margin guidance range of 21%-23%.

The company's annualized consolidated attrition rate stood at 21.7% as on 30 September 2019 as against 23.4% on 30 June 2019 and 22.2% on 30 September 2018.

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

"Q2 witnessed another quarter of all-round growth in industry segments and geographies which is a testimony to our strong credentials and client relevance", said Pravin Rao, COO of Infosys. "Large deal wins were $2.8 billion. We are especially pleased by the reduction in attrition driven by our focus on enhanced employee value proposition," he stated.

"We saw expansion in operating margins during the quarter driven by improvement in operational parameters and cost efficiencies", said Nilanjan Roy, CFO of Infosys. "We took the first step towards implementation of our new capital allocation policy by increasing interim dividend by over 14% compared to FY 19," he added.

Meanwhile, the S&P BSE Sensex was up 85 points or 0.22% to 38,212.05.

On the BSE, 1.14 lakh shares were traded in the counter so far compared with average daily volumes of 2.41 lakh shares in the past two weeks. The stock hit an intraday high of Rs 796.90 and an intraday low of Rs 781 so far during the day.

The stock hit a 52-week high of Rs 847.40 on 6 September 2019. The stock hit a 52-week low of Rs 600.65 on 26 November 2018.

Infosys is a global leader in next-generation digital services and consulting.

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