Infosys Q1 profit down 2% at Rs 4\,233 crore; pegs FY21 constant currency revenue growth at 0-2%

Infosys Q1 profit jumps 11.5% to Rs 4,233 crore, pegs FY21 constant currency revenue growth at 0-2%

Infosys has forecasted 0-2 per cent revenue growth in constant currency terms for the current financial year, while the operating margin is expected to remain in the range of 21-23 per cent

Ahead of Q1 earnings, shares of Infosys closed Wednesday's trade at Rs 831.45, up 6.16 per cent, on the BSE

Infosys, the country's second largest software exporter, on Wednesday reported 11.5 per cent growth in consolidated net profit (after minority interest) at 4,233 crore for the first quarter ended June 30, 2020 as against Rs 3,798 crore in the same period last year. On the quarter-on-quarter basis, the profit fell 2 per cent from Rs 4,321 crore in March quarter of FY20.

The IT major surprised the market by giving full year constant currency revenue growth guidance amid COVID-19 pandemic crisis. Infosys has forecasted 0-2 per cent revenue growth in constant currency terms for the current financial year while the operating margin is expected to remain in the range of 21-23 per cent.

The Bengaluru-based company has posted consolidated revenue of Rs 23,665 crore in June quarter of 2020 versus Rs 21,803 crore in the year ago period, registering a growth of 8.5 per cent. On a sequential basis, revenue rose 1.7 per cent from from Rs 23,267 crore in the previous quarter.

In dollar terms, net profit rose 2.3 per cent YoY to $ 558 million, while revenue fell 0.3 per cent YoY to $ 3,121 million during the June quarter of this fiscal over the year-ago period, Infosys said in a filing to the Bombay Stock Exchange.

"Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients' business priorities which is resonating with them in these times. It also demonstrates the remarkable dedication of our employees and leadership during this period", said Salil Parekh, CEO and MD.

"Our confidence and visibility for the rest of the year is improving driven by our Q1 performance and large deal wins," he added.

Based on the recommendation of the Nomination and Remuneration Committee, Infosys' board had appointed Bobby Parikh (as an additional and Independent Director effective July15, 2020 for a period of 3 years, subjected to the approval of shareholders.

Ahead of Q1 earnings, shares of Infosys closed Wednesday's trade at Rs 831.45, up 6.16 per cent, against previous closing price of Rs 783.20 on the BSE.