Infosys Q1 Net Profit Falls By 7%

IT giant Infosys Ltd reported a net profit of Rs 3,802 crore for the June-ended quarter. While the profits increased by 5.3 percent on a year-on-year basis, it fell by 6.8 percent when compared to the previous quarter. In the March-ended quarter, its profit was Rs 4,078 crore.

Revenue in rupee terms rose by 1.2 percent on a quarter-on-quarter basis to Rs 21,803 crore, whereas the dollar revenue showed a 2.3 percent increased from the previous quarter at $3,131 million. Constant currency revenue growth was at 2.8 percent.

"We had a strong start to FY20 with constant currency growth accelerating to 12.4 percent on YoY basis and digital revenue growth of 41.9 percent. This was achieved through our consistent client focus and investments which have strengthened our client relationships," said CEO and MD Salil Parekh.

The company has increased its FY20 revenue growth guidance range to 8.5-10 percent in constant currency, from the previous 7.5-9.5 percent and maintained an operating margin guidance range of 21-23 percent.

During the quarter, Infosys signed $2.7 billion of large deals, it said in the stock exchange filing.

Over a 5-year period, the company expects to return about 85 percent of the free cash flow cumulatively through a combination of semi-annual dividends or share buybacks. The current policy was to pay up to 70 percent of the free cash flow annually.