Infosys Q1 profit up 1.4% to Rs 3,483 cr, co raises dollar revenue guidance

Infosys stock was up 1.81 per cent at Rs 994 at 09.20 hours on the Bombay Stock Exchange.

Infosys, India's second-largest software exporter said its first-quarter profits grew 1.4 per cent to Rs 3,483 crore and revenue grew 1.8 per cent to Rs 17,078 crore,  on the back of improved operation controls, even as business from its main markets remain muted.

Infosys had posted a profit of  Rs 3,436 crore and revenue of  Rs 16,782 crore in the same period last year.

"“Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts– revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results," Infosys CEO Vishal Sikka said in a statement. "I am encouraged by the uptick in revenue per employee for six quarters in a row, and the strong momentum in our new high-growth services and software, as we accelerate our focus on innovation-led growth.”

On Thursday, larger rival TCS had reported muted numbers as it saw business slow down from banking and financial services and retail clients and margins impacted due to currency fluctuations and wage hikes. TCS had posted profits of Rs 5950 crore on revenue of Rs  29584 crore in the first quarter.

Infosys maintained its yearly forecast of 6.5-8.5% growth and would operate margins between 23 and 25 per cent.

The Bengaluru-software exporter has moved its chief financial officer  M D Ranganath to operate out of the United States.

India's IT firms are facing their worst crisis due to technology shifts, growing protectionism in markets such as the US, and automation affecting their businesses. 

Infosys operating margin remained flat at 24.1 per cent compares with the year-ago period. 

Revenue from digital technology services, including the contribution from new software platforms such as Edge, Nia, Panaya, Skava, accounted for nearly 10 per cent of the company’s revenue in Q1. 

During the April-June quarter, the company’s revenue in US dollar terms grew 6 per cent to $2.65 billion.  

While the IT major maintained its constant currency revenue growth guidance at 6.5 to 8.5 per cent for this fiscal, it has given an upward revenue growth guidance in US dollar terms at 7.1 to 9.1 per cent.  Infosys maintained its annual operating margin guidance between 23 and 25 per cent.