Free Press Journal

Infosys Q1 net rises 4%, approves 1:1 bonus issue 


Indian CEO and Managing Director of Infosys Salil Parekh (C), flanked by Chief Financial Officer M.D. Ranganath (R) and Chief Operating Officer U.B. Pravin Rao pose for a photograph in front of the Infosys headquarters prior to a press conference held in Bangalore to announce its first quarter results on July 13, 2018. / AFP PHOTO / MANJUNATH KIRAN

Mumbai : Infosys, the country’s second-largest software services exporter, posted a 3.7 per cent rise in quarterly profit on Friday, hurt by a one-off charge related to fair value reduction of Panaya, which the company is trying to dispose of.

The company has recorded a reduction in the fair value amounting to Rs 270 crore in respect of the Panaya business, the company said. Sequentially, however, net profit declined 2.1 per cent from Rs 3,690 crore a quarter ago.

“Consolidated revenue for the quarter (Q1) 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 IT major said.

Infosys also maintained its expectation for full-year revenue growth of between 6 and 8 per cent.

Profit for the quarter ended June came in at Rs 3,612 crore versus Rs 3,483 crore a year ago.

Infosys also announced a bonus issue of equity shares and stock dividend of American Depositary Shares in the ratio 1:1.

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.