Last updated: 13 Oct, 2021 | 03:22 pm
Profit rises: Infosys, India's second-largest software services exporters, has reported a 12% on-year rise in consolidated profit to Rs 5,421 crore. The profits were higher than the street estimates of Rs 5,288 crore. Sequentially, profit margin grew 4.4%.
Revenue growth: The consolidated revenue from the operations jumped to ₹29,602 crore, up nearly 20% on-year and 6.1% from the previous quarter. Analysts had estimated revenue around Rs 29,385.7 crore. The dollar revenue rose 5.7% to $3,998 million sequentially. The revenue growth was aided by growth across verticals. Digital revenues now contribute 56,1% of the total revenue. In terms of geographies, North America led with 23% on-year growth. The region now makes up around 62% of overall revenues.
Infosys Q2 results highlights:
Operational margins decline: EBIT margin fell 1.8% on year to 23.6% but are still within the margin guidance of 22%-24%. Analysts had earlier estimated an EBIT margin of 28%. The margins came under pressure as the full impact of the salary hike and supply side challenges were felt in the quarter.
Revenue guidance: Given this continued momentum the company has further increased its revenue growth guidance to 16.5%-17.5% from 14-16% earlier.
New Deal: The company’s large deal flows remained strong with TCV of $2.15 billion in Jul-Sep 2021 quarter as compared to $2.6 billion in the previous quarter.
Attrition rate: During Jul-Sep 2021, Infosys saw a rise in attrition at the company. Voluntary attrition rate increased to 20% from 13.9% in the previous quarter. To address this the company is looking to expand the college graduates hiring program to 45,000 this year.
Dividend: The company's board has approved an interim dividend of Rs 15 per share.
Infosys Q2 results: Review
Infosys has reported another strong set of numbers for the quarter ended Sep. The company was able to beat expectations on both topline as well as the bottomline. However, the margins slightly declined due to wage hikes, and supply related spends which weighed on the margins.
India's $194-billion IT services sector has been a big pandemic winner, thanks to the pandemic-induced surge in demand for services such as cloud computing, digital payment infrastructure and cybersecurity. The latest revision in its revenue guidance to 16.5-17.5% on the back of strong revenues indicates that Infosys’ is confident of delivering strong growth going forward. Infosys looks well-poised to expand its market share further in the upcoming quarters. Infosys scrip rose 1,43% to settle at ₹1,709.20 on NSE.