Infosys Q1 profit slips 3.3% to Rs 3,483 crore; hikes FY18 dollar revenue guidance

NEW DELHI: Infosys, second largest domestic IT firm, on Friday reported a 3.3 per cent sequential drop in net profit at Rs 3,483 crore for June quarter. The numbers though beat Rs 3,429 crore profit estimate projected by analysts in an ETNow poll.

The IT major had reported Rs 3,603 crore profit for the corresponding quarter last year.

Revenue for the quarter dropped 0.2 per cent to Rs 17,078 crore compared with Rs 17,120 crore in the corresponding quarter of last year. This was against ET Now poll estimate of Rs 16,987.90 crore.

The company maintained its constant currency revenue growth guidance of 6.5 to 8.5 per cent. Achieving the guidance band requires CQGR of 2.1 to 2.9 per cent over Q1-Q2FY18, analysts said.

FY18 dollar revenue guidance has been raised to 7.1-9.1 per cent from 6.1-8.1 per cent earlier.

The company said net sales rose 3.2 per cent sequentially to $2,651 million in dollar terms. Revenue growth in constant currency terms came in at 2.7 per cent for the quarter.

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Ebit for the quarter at Rs 4,111 crore beat ET NOW poll estimate of Rs 4,009 crore. Operating margins came in at 24.1 per cent.

The company will distribute Rs 13,000 crore via dividends or buybacks, the IT firm said.

Gross client addition for the quarter stood at 59, compared with 71 in the March quarter. The company added 6 clients in $25 million category.

“Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts– revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results. I am encouraged by the uptick in revenue per employee for six quarters in a row, and the strong momentum in our new high growth services and software, as we accelerate our focus on innovation-led growth,” CEO Vishal Sikka said in a statement.

(With inputs from Jochelle Mendonca, ET Bureau.)