Infosys Limited reported a fall in its net profit by 2.1 percent to Rs 3,612 crore for the April-June period from Rs 3,690 crore in March 2018 ended quarter. On a YoY (year-on-year) basis, its profit grew by 3.7 percent from Rs 3,483 crore in June 2017 quarter.
The country's second-largest IT services exporter, reported a revenue from operations at Rs 19,128 crore for the first quarter of 2018-19. On a quarter-to-quarter basis, the revenue rose by 6 percent from Rs 18,735 crore. In dollar terms, it grew by 1 percent to $2,831 million from the previous quarter.
The company has maintained its forecasted sales growth for the financial year 2018-19 at 6 to 8 percent. Its earnings before interest and tax (EBIT) fell 1.2 percent when compared to the previous quarter to Rs 4,537 crore while operating margin narrowed by 100 basis points to 23.7 percent.
1:1 Bonus Issue
The IT firm's board has approved a "bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined" as per the BSE filing.
The company release also said that in the quarter ended June 30, 2018, it has considered the offers of prospective buyers for its subsidiary Panaya and "recorded a fair value of investment of Rs265 crore" for the same, resulting a decrease in the profit for the quarter in review and reducing the basic earning per share by Rs 1.21.
New independent director
The statutory filing further stated that Infosys Ltd had appointed Michael Gibbs, as an Independent Director effective from July 13, 2018, for a period of 3 (three) years, subject to the approval of the shareholders.
The April-June quarter is usually strong for IT firms du toe high billing and budget allocation for future projects. Infosys shares rose by nearly 3 percent ahead of the announcement of its Q1 results. It had hit an intra-day high of Rs. 1,331.35 on BSE on Friday.