NEW DELHI: Beating market estimates, IT behemoth Infosys today reported a 5.2% jump in consolidated net profit to ₹3,802 crore for Q1 ending June. The results were announced after market hours.
Ahead of the announcement of results, Infosys shares closed 0.87% higher at ₹727.10 on the BSE.
Emkay Research report had expected Infosys's net profit to decline by 11 per cent QoQ due to lower other income and reduction in margins.
Edelweiss Securities Ltd had estimated Infosys's revenue to grow 2.8% quarter-on-quarter in constant currency terms, while dollar growth was seen down marginally due to cross currency headwinds. EBITDA margin was likely to fall 60 basis points (bps), hit by rupee appreciation (30bps).
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4:57 pm: Rao said they plan to hire around 18,000 employees this year.
4:54 pm: Infosys COO Pravin Rao said they issued joining letters to over 8,000 people in the June quarter. Out of that, 2,500 are freshers.
4:51 pm: Infosys COO Pravin Rao said recruitment in US will continue.
4:47 pm: "We see the growth being broad-based," Parekh said.
4:42 pm: Infosys said its current policy is to pay up to 70% of the free cash flow annually by way of dividend and/or buyback. The board has reviewed and approved a revised Capital Allocation Policy after taking into consideration the strategic and operational cash requirements.
4:40 pm: Parekh said their focus is now on operational efficiency and maintaining a discipline way of managing the cost.
4:38 pm: Infosys is on track towards completing its previously announced share buyback of ₹8,260 crore. The company has till date bought back shares worth ₹5,934 crore.
4: 37 pm: “Our first quarter results and continued focus on operational efficiencies gives us the confidence on our revenue and margin guidance for the year," said Nilanjan Roy, CFO. “Continuing our objective of improving shareholder returns, we have revised our capital allocation policy upwards to distribute ~ 85% of free cash flows cumulatively over a 5-year period."
4:37 pm: “We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise", said Pravin Rao, COO. “Large deal TCV was highest ever at $2.7 bn. Segment growth was robust with all large regions and most verticals growing at double digits yoy in constant currency"
4: 36 pm: “We had a strong start to FY 20 with constant currency growth accelerating to 12.4% on year over year basis and digital revenue growth of 41.9%. This was achieved through our consistent client focus and investments which have strengthened our client relationships", said Salil Parekh, CEO and MD. “Consequently, we are raising our revenue guidance for the year from 7.5%-9.5% to 8.5%-10%."
4:35 pm: Infosys said attrition is higher than where we want to be
4:33 pm: Parekh said they have maintained operating margin guidance.
4:32 pm: Infosys CEO Salil Parekh said the company made a good start at the beginning of the year.
4:28pm: Infosys raises FY20 revenue growth guidance range to 8.5-10 pc in constant currency.
4:21 pm: Infosys added 112 new clients in the June quarter. The IT major has 1,336 active clients as on June 30, 2019.
4:19 pm: Infosys's operating margins grew 20.5% in Q1.
4:18 pm: In dollar terms, Infosys's net profit for Q1 FY20 was $546 million
4:12 pm: Analysts on average had expected the Bengaluru-based company to report a net profit of ₹37.05 billion.
4:11 pm: Infosys said its revenue grew by 14% to ₹21,803 in Q1.
4:09 pm: Infosys announced that it will be entering into an agreement with Trifacta Inc, a data preparation software company, committing an additional investment of $6 million (earlier, the company had invested US$ 4.0 million during 2016 taking the cumulative investment to US$ 10.0 million as of date), subject to necessary closing conditions.
4:07 pm: Infosys reports a net profit of ₹3,802 crore