Infosys today reported a net profit of Rs. 3,726 crore for the July-September quarter, Its India’s second-biggest IT outsourcer, it has the power of beating the Street’s estimates. Indian software services company Infosys Ltd trimmed its revenue forecast for the year despite reporting a surprise rise in quarterly profit, But the outsourcer cut its growth guidance for the year, disappointing the Street.
the Bengaluru-based outsourcer after co-founder Nandan Nilekani returned at the helm as chairman in August has announced their first quarterly result. Infosys reported a net profit of Rs. 3,726 crore for the quarter ended September 30, 2017, up 7% sequentially and 3.4% year-on-year. Analysts on average had expected Infosys to post:
- A net profit of Rs. 3,523 crore, according to Reuters
- Revenues rose 2.9% sequentially to Rs. 17,567 crore
Infosys said, At the same time keeping undone its growth guidance for the year, revenues are expected to grow 5.5-6.5% in constant currency terms in the current fiscal years, compared to 6.5-8.5% growth as guided earlier.
Interim CEO and Managing Director, UB Pravin Rao said that “Our main focus is on executing on the theme of software-enabled services and on accelerating the growth of our new services portfolio.”
“We responded quickly to the management and Board changes through proactive communication with all stakeholders minimizing any negative impact to the business and allowing us to deliver growth across all our large industrial units, During the quarter.”
- Infosys’ revenue rose 2.9% in dollars sequentially to $2,728 million dollars.
- At the same time Reliance Securities had estimated Infosys’ Q2 revenue at $2,732 million.
- And in the June quarter, Infosys had reported dollar revenue of $2,651 million.
Infosys’ revenues grew 2.22% in a sequence, at constant terms, At the same time Reliance has 2.4% of sequential growth of securities had estimated upon its constant current revenue.
- Its EBIT margin or operating margin came in at 24.2% vis-a-vis 24.1% in June quarter
- Reliance Securities had estimated Infosys’ EBIT margin at 23.3% for the Q2
Infosys CFO MD Ranganath said, “Its the ultimate decision, Our focus on improving operational efficiencies enabled us to deliver stable margins in the quarter and at the same time provide compensation increases and higher variable payouts to our employees. The outreach has been initiated and the progressing was well in the process of identifying the next CEO and shareholder consultation.”
Today 1.4% Infosys, closed there share at Rs. 926. The outsourcer announced its results today after the market closing. Infosys shares have under-performed the broader indices this year, falling nearly 8%, as compared to a gain of 25% in the broader Nifty.