Infosys Q1 net grows 5.2 pc to Rs 3,802 cr; increases revenue guidance to 8.5-10%

The country's second-largest IT services firm Infosys Friday reported 5.2 per cent growth in consolidated net profit to Rs 3,802 crore for the quarter ended June 30, 2019.

It had posted a net profit of Rs 3,612 crore in the April-June 2018 quarter, Infosys said in a BSE filing.

Revenue from operations of the Bengaluru-based firm grew 13.9 per cent to Rs 21,803 crore in the June 2019 quarter, compared to Rs 19,128 crore in the year-ago period, it added.

Infosys has increased its revenue growth guidance for FY20 to 8.5-10 per cent in constant currency. In April quarter, Infosys had said it expects a revenue growth of 7.5-9.5 per cent in FY 2019-20.

"We had a strong start to FY'20 with constant currency growth accelerating to 12.4 per cent on year over year basis and digital revenue growth of 41.9 per cent. This was achieved through our consistent client focus and investments which have strengthened our client relationships," Infosys CEO and Managing Director Salil Parekh said.

He added that the company has consequently raised its revenue guidance for the year from 7.5-9.5 per cent to 8.5-10 per cent.

In US dollars terms, Infosys net profit grew to USD 546 million in the June quarter from USD 534 million in the year-ago period, while revenues rose to USD 3.13 billion as against USD 2.83 billion.

The company noted that its current policy entails paying up to 70 per cent of the free cash flow annually by way of dividend and/or buyback.

The Board has reviewed and approved a revised Capital Allocation Policy after taking into consideration the strategic and operational cash requirements, it said.

"Effective from Financial year 2020, the company expects to return approximately 85 per cent of the free cash flow cumulatively over a five-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals, if any," it added.

The results were announced after the market hours. Infosys shares closed marginally higher at Rs 727.10 apiece on BSE.