Infosys Q1 result out! Tech major posts 5.3% rise in profit at Rs 3,802 crore, raises revenue forecast

Infosys Ltd today posted a 5.3% rise in June-quarter profit, raising its revenue forecast for the fiscal year. India`s No. 2 IT services firm said that net profit for the three months ended June 30 rose to Rs 38.02 billion rupees from Rs 36.12 billion a year ago, while its revenue from operations rose nearly 14%, according to its regulatory filing with the BSE.

On the Infosys Q1 result, Salil Parekh, CEO and MD, “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”, adding “Consequently, we are raising our revenue guidance for the year from 7.5%-9.5% to 8.5%-10%.”

The company CEO Pravin Rao said: “We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise”, adding “Large deal TCV was highest ever at $2.7 bn. Segment growth was robust with all large regions and most verticals growing at double digits yoy in constant currency.”

However, the company's CFO Nilanjan Roy said, “Our first quarter results and continued focus on operational efficiencies gives us the confidence on our revenue and margin guidance for the year,” adding “Continuing our objective of improving shareholder returns, we have revised our capital allocation policy upwards to distribute ~ 85%
of free cash flows cumulatively over a 5-year period.”

Infosys Q1 results highlights:

1. Q1 20 revenues grew year-on-year by 14.0% in INR; 12.4% in constant currency
2. Q1 20 revenues grew sequentially by 1.2% in INR; 2.8% in constant currency
3. Q1 20 Digital revenues at $1,119 million (35.7% of total revenues), year-on-year growth of 41.9% and sequential growth of 8.6% in constant currency
4. Increased FY 20 revenue growth guidance range to 8.5%-10% in constant currency
5. Maintained FY 20 operating margin guidance range of 21%-23%

6. Revenues were Rs 21,803 crore, growth of 14.0% YoY and 1.2% QoQ
7. Operating profit was Rs 4,471 crore, decline of 1.5% YoY and 3.2% QoQ. Operating margin was 20.5%.
8. Basic EPS was Rs 8.83, growth of 6.2% YoY and decline of 5.8% QoQ