Infosys net up 3.7 per cent in first quarter

Bengaluru : 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 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.

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 4 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 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 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.