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Infosys Ltd, India's second-biggest software services exporter, has reported a 1.4 per cent increase in first-quarter profit on Friday, slightly beating street estimates, helped by key client wins.
The Bengaluru-headquartered company has posted a consolidated net profit of Rs 3,483 crore ($540 million) for the three months ended June 30, compared with Rs 3,436 crore in the same quarter last year. Consolidated revenue from operations rose about 1.8 per,cent to Rs 17,078 crore.
Revenues grew 1.7 per cent to Rs 17,078 crore in the June quarter from Rs 16,782 crore in the year-ago period, the company said in a BSE filing.
However, on a sequential basis, Infosys’ net profit declined 3.3 per cent, while revenues were down 0.2 per cent in rupee terms.
Analysts had, on average, estimated a consolidated net profit of Rs 3,439 crore for the quarter ended June, according to Thomson Reuters data.
At 2.20 p, the Infosys stock was trading up by 0.58 per cent at Rs 982 on the BSE.
Revenue, operating margin guidance
Infosys has maintained its revenue growth forecast for 2017-18 to be in the range of 6.5-8.5 per cent in constant currency and 7.1-9.1 per cent in US dollar terms. Operating margin guidance has been retained at 23-25 per cent.
“Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts — revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results,” Infosys MD and CEO Vishal Sikka said.
He added that he is encouraged by the “uptick in revenue per employee for six quarters in a row”, and the strong momentum in Infosys’ new high growth services and software.
In US dollar terms, Infosys’ net profit grew 5.8 per cent to USD 541 million in the June quarter while revenues rose 6 per cent to USD 2.65 billion from the year—ago period.
Liquid assets including cash and cash equivalents and investments were at Rs 39,335 crore as of June 30, 2017.
“We successfully navigated yet another quarter of significant currency volatility through our hedging,” Infosys CFO M D Ranganath said.
Total headcount, client additions
Its total headcount stood at 1.98 lakh at the end of June quarter. The company said it added eight clients in its $100-million category. The company's gross client additions stood at 59 in June quarter.
The company has appointed Inderpreet Sawhney as group general counsel and chief compliance officer effective July 3.
Net employee reduction was 1,811 in June quarter. June quarter annualised standalone employee attrition stood at 16.9 percent versus 15.8 per cent year ago. June quarter annualised consolidated employee attrition stood at 21.0 per cent versus 21.0 per cent year ago.
The company has approved the annual compensation of Inderpreet Sawhney. Inderpreet Sawhney's annual cash compensation is worth $0.90 million. Sandeep Dadlani, President, has resigned from the company effective July 14
Infosys said that it has approved the revised compensation structure of CFO, M D Ranganath. It has asked Ranganath to operate from US.
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