Infosys registers 5.8 percent growth

Infosys registers 5.8 percent growth

Agency News

India’s second-largest software exporter, Infosys, reported on Friday a 5.8 percent sequential growth in Q2 FY20 net profit at Rs 4,019 crore. Infosys share price closed on Friday four percent higher at Rs 815.70.

The company also declared an interim dividend of Rs 8 per share. The management, October 11, also revised its full-year constant currency revenue growth guidance to 9-10 percent from 8.5-10 percent earlier.

Revenue during the quarter rose 3.8 percent QoQ to Rs 22,629 crore. The same in dollar terms rose 2.5 percent at $3,210 million. Growth in constant currency terms was 3.3 percent QoQ, the company said in its BSE filing. The year-on-year increase in dollar revenue growth was 9.9 percent and 11.4 percent in constant currency in Q2.

Infosys signed $2.8 billion worth of deals during September quarter.

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

“All these are clear signs that we are progressing well in our journey of client-centricity and maximizing value for our stakeholders," he added.

The company said digital revenues in Q2 FY20 at $1,230 million (38.3 percent of total topline) registered a year-on-year growth of 38.4 percent and sequential growth of 10.7 percent in constant currency.

The stock rallied 10 percent in the September quarter and 22 percent year-to-date. It closed on Friday four percent higher. Infosys maintained its full year EBIT margin guidance at 21-23 percent.

Operating performance was slightly ahead of analyst estimates as earnings before interest and tax (EBIT) grew by 9.9 percent sequentially to Rs 4,912 crore and margin expanded 120bps QoQ to 21.7 percent for quarter ended September 2019.