After TCS Q1FY20 results which missed on revenue estimates, Bengaluru-headquartered Infosys has announced its earnings for the quarter ended June. Here are 5 key takeaways from the results:
1. Revenue: The IT major delivered a constant currency revenue growth of 2.8% for the period under review and dollar revenue showed a 2.3% sequential growth at $3,131 million . This is in line with the street estimates.
In rupee terms revenue came in at Rs. 21,803 crore, with an increase of 1.2% q-o-q. Analyst expected the IT leader to deliver steady revenue growth. Further revenue stream was expected to be supported from the company's the financial services vertical .
"We had a strong start to FY 20 with constant currency growth accelerating to 12.4 percent on year-over-year 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," Salil Parekh, CEO and MD said.
2. Net profit: Net profit for the quarter came in at Rs. 3802 crore This is higher than the street estimates. For the quarter ended March, the company posted net profit of Rs 4,078 crore.
3. FY20 revenue guidance: Infosys increased its full-year guidance for revenue in constant currency terms to 8.5-10% and EBIT margin guidance of 21-23%.
4. Operating Profit: Margin stood lower at 20.5% versus 23.7% for the quarter ended March. During the corresponding period a year ago, the operating profit came in at 21.4%.
5. Contracts Signed : During the quarter the IT company signed large deals worth $2.7 billion.
6. On course to pay up to 85% of the free cash flow to its investors by way of dividends or share buybacks over a 5-year period on a cumulative basis.
4. Stock market reaction: Investors are likely to cheer the results which are said to better than TCS. Just before the results, the stock of Infosys gained 0.87% or Rs. 6.25 to close at Rs. 727.10 on the BSE.