Infosys Q1 earnings: Net profit rises 12% to ₹4,233 crore, beats estimates

India's second largest Information Technology services company Infosys today reported a 11.4% growth in its consolidated net profit. The company reported a net profit of ₹4,233 crore in June quarter. It had reported a net profit of ₹3,798 crore in the same period last year.

The consolidated revenue from the operations increased 1.7% sequentially to ₹23,665 crore. The dollar revenue fell 2.4% quarter-on-quarter to $3,121 million for the quarter.

Constant currency revenue for the quarter fell 2 percent on sequential basis, which was much better than street estimates of 5 percent decline QoQ.

"Operating margin expanded to 22.7% driven by preemptive deployment of our strategic cost levers along with the tactical opportunities triggered by the COVID situation," said Nilanjan Roy, CFO, Infosys.

Infosys signed $1.74 billion worth of large deals in the three months to June 30, it said in a statement

Digital revenues at $1,389 million (against $1,341 million QoQ) contributed 44.5 percent to total revenue in June quarter against 41.9% in previous quarter. Free Cash Flow stood at ₹5,524 crore; year-on-year growth of 63.5%.

“Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients' business priorities which is resonating with them in these times. It also demonstrates the remarkable dedication of our employees and leadership during this period," said Salil Parekh, CEO and MD.

“During the last few months, we took multiple steps aimed at employee safety and well-being while providing seamless services to our clients. Clients have recognized us for the speed, security and effectiveness of our remote enablement efforts”, said Pravin Rao, COO.

The Infosys Board, based on the recommendation of the Nomination and Remuneration Committee, appointed Bobby Parikh as an additional and Independent Director of the Company effective July 15, 2020 for a period of 3 years, subject to the approval of the shareholders.

“Our confidence and visibility for the rest of the year is improving driven by our Q1 performance and large deal wins,” Parekh a