New Delhi: IT company Infosys reported a net profit of Rs 3,612 crore in the June quarter, missing the market’s estimates. Analysts polled by Reuters, on average, had expected a net profit of Rs 3,740 crore. Infosys board also approved a bonus issue of one equity share for every equity share held. The operating margin in the June quarter contracted to 23.7% sequentially while the net profit was also hit by a Rs 270 crore reduction in the fair value of Panaya. Infosys retained FY 19 revenue guidance in constant currency at 6%-8% and FY 19 operating margin guidance at 22%-24%.
The Bengaluru-headquartered company’s revenue from operations rose to Rs 19,128 crore, up 12% on a year-on-year basis and 5.8% on sequential basis. In terms of closely tracked dollar revenues, Infosys reported revenues of $2,831 million for the quarter ended June 30, 2018, a year-on-year growth of 6.8% and 0.9% sequentially.
“The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients”, said Salil Parekh, CEO and MD. “With our Agile Digital business growing sequentially at 8% in constant currency and increase in our large deal wins to over $1 billion, we see good traction in the market.”
Infosys had reported a net profit of Rs 3,690 crore for the quarter ended March 31, 2018 on revenues of Rs 18,083 crore. In the March quarter Infosys had reported an operating margin of 24.7%. Infosys had earlier guided for a revenue growth of 6%-8% in constant currency. In the March quarter, the closely watched dollar revenues were at $2,805 million.
Infosys shares today ended 1.12% higher at Rs 1,309 ahead of its earnings, which was announced after market hours today.
Infosys shares have outperformed the broader markets since the start of this year. Infosys share price are up nearly 25% year to date.
India’s biggest IT company TCS had announced Q1 results on Tuesday. The Mumbai-headquartered company reported net profit of Rs 7,340 crore on revenues of Rs 34,261 crore, with operating margin of 25%.
In terms of dollar revenues, TCS revenues grew to $5,051 million, up 1.6% quarter-on-quarter and 10% on year-on-year basis.