Infosys Reports 12.4% Jump In Q1 Profit At Rs 4,272 Crore

On Wednesday, Infosys Limited reported a 12.4 percent rise in consolidated net profit to Rs 4,272 crore for June 2020 quarter. The company had posted a net profit (before minority interest) of Rs 3,802 crore in the year-ago period, it said in a BSE filing.

Its revenue grew 8.5 percent to Rs 23,665 crore in the quarter under review from Rs 21,803 crore in the corresponding period last fiscal.

The company expects its revenue for the current financial year 2020-21 to grow by up to 2 percent in constant currency terms. In April, Infosys had refrained from providing a revenue outlook for the year, citing uncertainty amid COVID-19 outbreak.

In the June quarter, Infosys saw its revenues grow 1.5 percent year-on-year in constant currency terms. On sequential basis, constant currency revenue for the quarter fell 2 percent.

"Our confidence and visibility for the rest of the year is improving driven by our Q1 performance and large deal wins," said, CEO Salil Parekh.

Digital revenues were at $1,389 million, against $1,341 million in the previous quarter, contributing 44.5 percent to total revenue in April-June period.

Infosys added 2 clients in $10 million+ band, 11 clients in $1 million+ category, but lost 3 clients in $100 million+ band and 1 client in $50 million+ category.

Total active clients as of 30 June 2020 stood at 1,458, increased from 1,411 in the previous quarter.

At the operating level, earnings before interest and tax (EBIT) jumped 8.9 percent from the previous quarter to Rs 5,365 crore and margin expanded 1.50 percent to 22.7 percent. Operating expenses fell 8.5 percent when compared to the March quarter.

Ahead of its announcements on financial results, shares of Infosys Limited surged as much as 8.3 percent to Rs 848.45 after the company announced its strategic partnership with US-based investment company Vanguard for a multi-year IT contract.