Infosys Shares Jump 6% After Q1 Results; Key Takeaways from Earnings
Infosys reported a net profit of Rs 3,802 crore for the June quarter, up 5.3% on a year-on-year basis, but down 6.8% compared with the previous quarter.
Infosys Ltd shares jumped nearly 6% in early trade on Monday after the IT company’s first (Q1) earnings beat analyst expectations on all major fronts – revenue, profit and margins.
At 10:15am, the Infosys stock was trading at Rs 769.95, up 5.9%, on BSE. Here are key takeaways from Infosys Q1 results:
— Infosys reported a net profit of Rs 3,802 crore for the June quarter, up 5.3% on a year-on-year basis, but down 6.8% compared with the previous quarter.
— Infosys’ dollar revenue grew by 2.3% to $3,131 million for the June quarter when compared with the previous quarter.
— The rupee revenue rose to Rs 21,803 crore during the June quarter, up 1.2% sequentially and 14% y-o-y.
-- Infosys margins stood at 20.5% for the June quarter compared with 21.44% seen in the previous quarter.
— Infosys increased FY20 revenue growth guidance to 8.5-10% in constant currency terms, while maintaining operating margin guidance range of 21-23%.
— Most of the business segments witnessed growth during the June quarter, with double-digit year-on-year growth seen in communications, energy-utilities-resource-services, manufacturing, and hi-tech.
— Infosys’ revenue from India contracted 1.1% on a year-on-year basis. The North America business grew 13.5% y-o-y, followed by Europe which saw a gain of 7.2%. Revenue from rest of the world grew by 5.9% during the same period.
— Infosys also said it has reported record deal wins of $2.7 billion in the June quarter.
— Infosys said it has revised its capital allocation policy upwards to distribute about 85% of free cash flows cumulatively over a five-year period, from 70% earlier by way of dividend and/or buyback.
— Infosys said it was on track towards completing its previously announced share buyback of Rs 8,260 crore, adding that it had bought back shares worth Rs 5,934 crore to date.
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