You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Infosys Q2 PAT jumps 20% YoY to Rs 4,845 cr

Capital Market 

The IT major's consolidated net profit jumped 20.5% to Rs 4,845 crore on a 8.6% rise in revenues to Rs 24,570 crore in Q2 September 2020 over Q2 September 2019.

Sequentially, consolidated net profit rose 14.4% and revenue increased 3.8% in Q2 September 2020 (Q2FY21) over Q1 June 2020 (Q1FY21). Consolidated profit before tax (PBT) stood at Rs 6,750 crore in Q2 FY21, gaining 16.5% from Rs 5,792 crore in Q1FY21. Total tax expense rose 24.5% to Rs 1,892 crore in Q2 FY21 over Q1 FY21. The result was announced after market hours today, 14 October 2020.

Operating profit jumped 16.1% to 6,228 crore in Q2 FY21 over Q1 FY21. Operating margin stood at 25.3% in Q2 FY21, higher than 22.7% in Q1 FY21.

The company has revised FY21 growth guidance upward to 2% to 3% in constant currency term. Operating margin for FY21 is also revised upward in the range of 21% to 23%.

The company announced large deal wins worth $3.15 billion during the quarter. Infosys' Q2 revenue grew year-on-year by 3.2% in dollar terms and grew by 2.2% in constant currency. Digital revenues were at $1,568 million (47.3% of total revenues), year-on-year growth of 25.4% in constant currency.

Free cash flow stood at Rs 4,989 crore with a year-on-year growth of 78.1%. Consolidated cash and cash equivalents were at Rs 33,601 crore as on 30 September 2020 compared with Rs 28,674 crore as on 30 June 2020 and Rs 23,733 crore as on 30 September 2019.

The company will roll out salary increases, promotions across all levels with effect from 1 January. The attrition rate for Q2 September 2020 declined to 7.8% against 18.3% in last fiscal. Infosys had 2,40,208 employees as of 30 September 2020 as against 2,36,486 in the same period last year.

Commenting on the performance, Salil Parekh, CEO and MD said, "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."

Nilanjan Roy, CFO said, "Our relentless efforts on cost optimization and strengthening operational efficiencies helped by certain cost deferrals led to 270 bps sequential improvement in operating margin to 25.4% and a 300 bps improvement in H1 margins."

Infosys declared an interim dividend of Rs 12 per equity share. It fixed 26 October 2020 as record date for interim dividend and 11 November 2020 as payment date.

Shares of Infosys fell 1.89% to Rs 1136.10 today. Infosys is a global leader in next-generation digital services and consulting.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 14 2020. 16:39 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU