17
Tuesday
September 2019
10:50 AM IST
News Headlines
Pakistan recall Umar Akmal, Ahmed Shehzad for uncertain Lanka series        Kohli holds on to 2nd spot as Smith retains number one position in ICC Test Rankings        Steve Smith 'proud' after summer of Ashes redemption        Some 46,000 General Motors auto workers strike in US        Sensex cracks nearly 300 pts; oil and gas stocks tank        Trump to join Modi in Houston to address 50K Indian-Americans, says White House        Car bomb kills 11 civilians in northern Syria: monitor        PM to visit Narmada dam on b'day to mark highest water level feat        Bribery case: CBI inspector surrenders before ACB        Centre should release funds for MP flood relief: Scindia        Cong, NCP to contest 125 seats each in Assembly polls: Pawar        21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA        Government to rebuild Palarivattom flyover        CM demands PSC questions in Malayalam        Sourabh wins Vietnam Open Super 100 title        England close in on Ashes-levelling win after Broad double        Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal        SBI to move RBI to offer fixed-floating rate home-loans: Chairman        Hong Kong returns to violence with tear gas and Molotovs        36 people missing after boat sinks in Congo river: DRC police        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Infosys Q1 net grows 5.2 pc to Rs 3,802 cr; ups revenue guidance to 8.5-10%
 
Bengaluru: IT behemoth Infosys Ltd Friday posted better-than-expected 5.3 per cent rise in its June quarter net profit as it bagged more orders, and raised revenue growth forecast for the current fiscal to 8.5-10 per cent range.

The country's No 2 IT services firm posted a net profit of Rs 3,802 crore, or Rs 8.83 per share, in April-June as compared to Rs 3,612 crore, or Rs 8.31 a share, in the same period of the previous fiscal, the company said.

Notably, Infosys has announced an enhanced capital allocation policy wherein it will return 85 per cent of free cash flow cumulatively over a five-year period to shareholders via buyback and dividends.

Revenue from operations rose 14 per cent to Rs 21,803 crore. The Bengaluru-based company secured USD 2.7 billion - its highest ever in a quarter - in large deals, mostly in dominant North American and European markets.

The company has raised its revenue growth guidance for the fiscal to March 31, 2020 to be between 8.5 per cent and 10 per cent, from the 7.5 per cent to 9.5 per cent range it had forecast earlier.

Ahead of the announcement of results, Infosys shares closed 0.87 per cent higher at Rs 727.10 on the BSE on Friday.

Commenting on the results, Infosys CEO and Managing Director Salil Parekh said, "We had a strong start to FY'20 with constant currency growth accelerating to 12.4 per cent on year over year basis and digital revenue growth of 41.9 per cent. This was achieved through our consistent client focus and investments which have strengthened our client relationships".

Attributing the performance to a "broad-based growth", Parekh added that the company has consequently raised the revenue guidance for this fiscal from 7.5-9.5 per cent to 8.5-10 per cent in constant currency terms.

In US dollars terms, Infosys net profit grew to USD 546 million in the June quarter from USD 534 million in the year-ago period, while revenues rose to USD 3.13 billion as against USD 2.83 billion.

"We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise. Large deal TCV was highest ever at USD 2.7 billion. Segment growth was robust with all large regions and most verticals growing at double digits y-o-y in constant currency," Infosys COO Pravin Rao said.

Infosys' larger rival Tata Consultancy Services (TCS) posted a 10.8 per cent rise in June quarter profits, while its revenue grew 11.4 per cent to Rs 38,172 crore during the quarter. The company had said its focus will be on maintaining double-digit revenue growth in the rest of the year.

Wipro and HCL Technologies are slated to announce their results in the coming weeks.

Infosys Friday said its digital revenues in the June quarter was at about USD 1.1 billion (35.7 per cent of total revenues), having grown 41.9 per cent year-on-year.

Its operating margin for the quarter was at 20.5 per cent, and the company expects to maintain the FY20 operating margin range of 21-23 per cent.

Infosys added 906 people (net) during the quarter to take its total headcount to 2,29,029 at the end of June 2019. The attrition (annualised consolidated) was at 23.4 per cent.

The company said there was no impact of attrition on its deliverables and that historically, the first quarter of the fiscal has a higher level of attrition.

Infosys has initiated a number of measures for employee engagement, investment in career opportunities and enrichment of experience for employees, the top management said, conceding that the attrition was definitely higher than what the company wanted.

Talking about the revamped capital return policy, Infosys Chief Financial Officer Nilanjan Roy said, "Continuing our objective of improving shareholder returns, we have revised our capital allocation policy upwards".

Effective from the financial year 2019-20, Infosys expects to return about 85 per cent of its free cash flow cumulatively over a five-year period through a combination of semi-annual dividends, buyback and/or special dividends, it said.

Infosys added that it is on track towards completing its previously announced share buyback of Rs 8,260 crore and has bought back shares worth Rs 5,934 crore till date.

The development comes at a time when the government has proposed that listed companies be liable to pay additional tax at 20 per cent in case of share buyback as is the case currently for unlisted companies.

Roy said it was "too premature" to comment on the issue but added that the company is going to continue its existing buyback programme.

Infosys noted that its current policy entails paying up to 70 per cent of the free cash flow annually by way of dividend and/or buyback.


Some 46,000 General Motors auto workers strike in US
Sensex cracks nearly 300 pts; oil and gas stocks tank
Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal
SBI to move RBI to offer fixed-floating rate home-loans: Chairman
Inflation under control, clear signs of revival in factory output: FM
China to lift punitive tariffs on US soybeans, pork
Exports decline 6 pc; imports dip 13.45 pc
Retail inflation inches up to 10-month high of 3.21 pc in August
India & Qatar to focus on hydrocarbon sector: Pradhan
Samruddhi Corridor: MSRDC ties up loans of Rs 28,000 crore
Just 19 pc employers in India bullish on hiring in Oct-Dec qtr: Survey
Alibaba's Ma steps down as industry faces uncertainty
Ahead of festivals, SBI again cuts lending rates by 10 bps
Sensex drops over 150 pts; bank, auto stocks drag
15th Finance Commission holds meeting with Raj bodies, industry
PNB puts up for sale 11 NPA accounts to recover dues of Rs 1,234 cr
States to be key drivers of growth for making India USD 5 trillion economy: Niti CEO
FinMin sets up task force to identify infra projects for Rs 100 lakh cr investment
To create jobs, C'garh govt reduces land rates for industries
India's domestic market for computer services to grow faster than exports: UN report
KERALA NEWS
Government to rebuild Palarivattom flyover
 Thiruvananthapuram: The state government has decided to demolish and rebuild Palarivattom flyover as  
CM demands PSC questions in Malayalam
Tipplers guzzle Rs 487 crore worth liqour during onam
candidate selection for Pala by-election is an internal matter of KC(M): Chandy
INTERNATIONAL NEWS
Trump to join Modi in Houston to address 50K Indian-Americans, says White House
 Washington: US President Donald Trump will join Prime Minister Narendra Modi at Houston's mega "Howd
Car bomb kills 11 civilians in northern Syria: monitor
Hong Kong returns to violence with tear gas and Molotovs
36 people missing after boat sinks in Congo river: DRC police
NATIONAL NEWS
PM to visit Narmada dam on b'day to mark highest water level feat
 Ahmedabad: Prime Minister Narendra Modi, who turns 69 on Tuesday, will visit the site of the Gujarat
Bribery case: CBI inspector surrenders before ACB
Centre should release funds for MP flood relief: Scindia
21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA
Untitled Page
Rashtra Deepika LTD
Copyright @ 2019 , Rashtra Deepika Ltd.