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Infy Q1 PAT slips 2% to Rs 4,233 cr

Infosys reported a 2% fall in consolidated net profit to Rs 4,233 crore on a 1.7% rise in revenues to Rs 23,665 crore in Q1 June 2020 (Q1FY21) over Q4 March 2020 (Q4FY20).

Consolidated profit before tax (PBT) rose 5.4% to Rs 5792 crore in Q1FY21 over Q4FY20. Tax expense jumped 30.9% to Rs 1520 crore in Q1FY21 over Q4FY20. The result was announced after market hours today, 15 July 2020.

Operating profit jumped 8.9% to 5,365 crore in Q1FY21 over Q4FY20. Operating margin stood at 22.7% in Q1FY21, higher than 21.2% in Q4FY20.

After refraining from giving guidance in Q4 March 2020, Infosys forecasted FY21 revenue growth in the range of 0%-2% in constant currency terms. Operating margin for FY21 is expected to be in the range of 21%-23%.

The company announced large deal wins worth $1.74 billion during the quarter. In the US dollar terms, revenue of the company declined year-on-year by 0.3% but grew by 1.5% in constant currency.

Digital revenues were at $1,389 million (44.5% of total revenues), year-on-year growth of 25.5% in constant currency. Free cash flow stood at Rs 5,524 crore with a year-on-year growth of 63.5%.

Commenting on company's performance, Salil Parekh, CEO and MD said, "Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients' business priorities which is resonating with them in these times. It also demonstrates the remarkable dedication of our employees and leadership during this period.

"Operating margin expanded to 22.7% driven by preemptive deployment of our strategic cost levers along with tactical opportunities triggered by the COVID situation," said Nilanjan Roy, CFO. "Collections were robust and capex was focused, which led to 50% year on year increase in free cash flows. Our liquid and debt free balance sheet is a huge source of strength in these times."

Consolidated cash and cash equivalents stood at Rs 28,674 crore as on 30 June 2020 compared with Rs 27,276 crore as on 31 March 2020 and Rs 24,639 crore as on 30 June 2019.

Attrition rate for Q1 June 2020 declined to 11.7% against 20.2% last fiscal. Infosys had 2,39,233 employees as of 30 June 2020, against 2,29,029 in the same period last year.

The board appointed Bobby Parikh as an additional and independent director of the company effective 15 July 2020 for a period of 3 years, subject to the approval of the shareholders.

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

Shares of Infosys jumped 6.16% to end at Rs 831.45 on BSE in today's session. The stock moved in the range of Rs 795.35 to Rs 848.

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