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Infosys net up 3.7% in first quarter
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SME Times News Bureau | 14 Jul, 2018
Global software major Infosys on Friday reported Rs 3,613 crore
consolidated net profit for the first quarter of fiscal 2018-19,
registering a 3.7 per cent annual growth from Rs 3,483 crore in the same
period year ago.
Sequentially, however, net profit declined 2.1 per cent from Rs 3,690 crore a quarter ago.
"Consolidated
revenue for the quarter (Q1) under review grew 12 per cent annually to
Rs 19,128 crore from Rs 17,078 crore in the like period year ago and 5.8
per cent sequentially from Rs 18,083 crore quarter ago," said the
city-based IT major in a regulatory filing on the BSE.
Digital
revenues contributed $803 million, accounting for 28.4 per cent of the
total income from operations, with 8 per cent sequential growth and 25.6
per cent annual growth in constant currency.
"The strong revenue
and margin performance in the quarter shows our dual emphasis on agile
digital and Artificial Intelligence (AI)-driven core services are
resonating with our clients," said Infosys Chief Executive Salil Parekh.
Operating margin at 23.7 per cent is in line with the guidance given in the beginning of the quarter in April.
The
company clarified that profit decreased Rs 270 crore for the quarter
following re-measurement of its assets for sale, including consideration
of progress in negotiations on offers from prospective buyers for its
US-based Panaya software subsidiary.
"A reduction of Rs 270 crore has been recorded in the fair value of Panaya for disposal," pointed out a statement.
With
8 per cent sequential growth in agile digital business and increase in
large deal wins to over $1 billion, Parikh said the company was seeing
good traction in the market.
"Large deal wins have crossed
$1billion, with financial services accounting for 40 per cent of them,"
said the outsourcing firm in the statement.
The number of $100-million clients increased by four to 24 during the quarter.
"Our
emphasis on deepening client relationships resulted in strong client
metrics, including increase in $100-million+ clients to 24," said Chief
Operating Officer U.B. Pravin Rao.
The company has retained the
6-8 per cent annual revenue guidance it gave in April for the fiscal (FY
2019), with the operating margin guidance at 22-24 per cent.
Utilization (excluding trainees) touched an all-time high of 85.7 per cent during the quarter.
"We
had broad-based financial performance on multiple fronts, including
return on investment crossing 25 per cent, free cash flow up 32 per cent
quarterly and operating margins at the upper quartile of the guidance",
said Chief Financial Officer M.D. Ranganath.
The company added
70 new clients in the quarter as against 73 quarter ago and 59 year ago,
taking their total to 1,214 as against 1,204 quarter ago and 1,164 year
ago.
The company also announced 1:1 bonus share to mark 25 years
of its public listing in India and increase the liquidity of its equity
shares.
"The Board has recommended the issue of 1 bonus share
for every equity share held to celebrate the 25th year of the company's
public listing in India and further increase liquidity of its shares,"
said the statement.
The company has also decided to give a stock
dividend of one American Depository Share (ADS) for every ADS held to
mark the occasion.
This is the eighth time Infosys rewarded its
investors, including promoters, co-founders, institutional and retail
investors, worldwide, with the first being on August 19, 1997 and
previous on June 15, 2015.
The company, however, gave 3:1 bonus
share on July 2, 2004, while it has been 1:1 on six times in 2015, 2014,
2006, 1999 (twice) and 1997.
The company's blue-chip scrip of Rs
5 face value gained Rs 14.50 at the end of Friday's trading on the BSE
to close at Rs 1,309.10 per share as against Thursday's closing rate of
Rs 1,294.50 and opening price of Rs 1,310. The scrip also touched a high
of Rs 1,331.15 and a low of Rs 1,300.15 during the intra-day trading
sessions.
Meanwhile, the Board has appointed Michael Gibbs as
Independent Director for three years on the recommendation of the
nomination and remuneration committee.
Gibbs served as a global
information officer with the British Petroleum and has vast experience
in the oil and gas sector in Britain and the US.
In a related
development, the company delisted its ADS from Euronext Paris and London
on July 10 and July 5, respectively, due to low average daily trading
volume of its shares on these exchanges.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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