Infosys on Friday reported a 5.26 per cent year-on-year (YoY) rise in its net profit at Rs 3,802 crore for the first quarter (April-June) of the financial year 2019-20. The company had reported profit after tax (PAT) of Rs 3,612 crore in the corresponding quarter of the previous fiscal year. In the previous quarter (January-March period), the figures stood at Rs 4,078 crore.
Revenues for the quarter under review stood at Rs 21,803 crore, up 14 per cent YoY and 1.2 per cent on quarter-on-quarter (QoQ) basis. Revenue in constant currency terms grew 2.8 per cent.
The IT services company increased the FY20 growth guidance in constant currency (CC) terms to 8.5-10 per cent from 7.5-9.5 per cent while it maintained FY20 operating margin guidance range of 21 per cent - 23 per cent.
“We had a strong start to FY 20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships”, said Salil Parekh, CEO and MD. “Consequently, we are raising our revenue guidance for the year from 7.5 per cent - 9.5 per cent to 8.5 per cent-10 per cent.”
Operating profit came in at Rs 4,471 crore, down 1.5 per cent YoY and 3.2 per cent QoQ. Operating margin was 20.5 per cent.
Q1 20 Digital revenues at $1,119 million (35.7 per cent of total revenues), YoY growth of 41.9 per cent and sequential growth of 8.6 per cent in constant currency, the company said in its press release.
Basic earnings per share (EPS) came in at Rs 8.83, up 6.2 per cent YoY and a decline of 5.8 per cent QoQ, it said.
The company, however, recorded sharp rise in attrition rate at 23.4 per cent against 20.4 per cent logged in the previous quarter. In the year-ago period, the attrition rate stood at 20.4 per cent.
Analysts at Emkay Global had projected a 2.5 per cent QoQ CC growth for the June quarter. They had estimated EBIT margins to decline by nearly 70 bps QoQ to 20.7 per cent. Net profit was expected to fall 11 per cent QoQ to Rs 3,645.4 crore. On year-on-year (YoY) basis, the numbers were seen growing by 1 per cent. Net revenue was expected to increase 1 per cent QoQ (13.7 per cent YoY) to Rs 21,746.8 crore.