Infosys Q1 results: Net profit rises 2% QoQ to Rs 5,195 cr, misses estimates; firm signs large deals worth $2.6 bn

MUMBAI: Infosys today reported a 2.3 per cent sequential rise in consolidated net profit to Rs 5,195 crore for the quarter ended June, which was below analysts’ estimates.

The company’s consolidated revenue from operations climbed 6 per cent sequentially to Rs 27,896 crore for the reported quarter, which was slightly ahead of Street’s estimates.

The company said it signed large deals worth $2.6 billion during the quarter ended June. The company added two new clients in the $100 million plus category and 12 new clients in the $10 million plus bracket as compared to the previous quarter.


"This gives us confidence to increase our revenue growth guidance to 14-16%,” Salil Parekh, CEO and managing director said in a press statement. Earlier, Infosys had guided for revenue growth of 12-14 per cent in constant currency terms in 2021-22.

The information technology giant reported a constant currency revenue growth of 4.8 per cent on-quarter and 16.9 per cent year-on-year. The digital services business continued to post robust performance as it grew nearly 10 per cent sequentially to $2 billion in the June quarter.


The growth in the business of the Bengaluru-based company was led by the financial services and retail vertical, which grew over 22 per cent on-year in constant currency terms. Besides BFSI and retail, the life sciences vertical also clocked over 21 per cent on-year growth in the June quarter.

In terms of geographies, North America led the surge with growth of 21.1 per cent on-year followed by India where sales climbed 20.7 per cent. In Europe, the company’s sales rose 12.2 per cent on-year on a constant currency basis.

During the quarter, Infosys witnessed a sharp sequential rise in attrition at the company, reflecting the growing struggle to keep talents within its doors. Voluntary attrition rate surged to 13.9 per cent in the June quarter from 10.9 per cent in the previous quarter.


The war for talent continued to have a negative impact on the operating performance as consolidated operating margin fell 80 basis points sequentially to 23.7 per cent, which was still within the company guidance of 22-24 per cent operating margin in 2021-22.

“We remain confident of delivering on the margin guidance, underpinned by our comprehensive cost optimization program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention,” said chief financial officer Nilanjan Roy.