Infosys clocks 9.8 per cent revenue growth in Q2

Mumbai: Infosys, India’s second largest IT services company, delivered stronger second quarter revenue growth than its peer Tata Consultancy Services.

The Bengaluru-based firm saw its revenues rise 9.8 per cent to Rs 22,629 crore during the July-September 2019 (Q2) quarter against Rs 20,609 crore in the year-ago quarter.

Infosys also raised the lower-end of its FY20 revenue guidance, and the revised forecast now stands at 9-10 per cent growth in constant currency terms, from 8.5-10 per cent. However, consolidated net profit declined by 2.2 per cent to Rs 4,019 crore in Q2 from Rs 4,110 crore a year ago.

Infosys declared an interim dividend of Rs 8 per share with record date of October 24.

The cash and cash equivalents held by the firm came down sharply to $2.324 billion as on September 30 from $2.829 billion as on March 31.

Commenting on the numbers, Infosys CEO & MD Salil Parekh said, “Our performance was robust on multiple dimensions — revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition.”

All these are clear signs that the company is progressing well in its journey of client-centricity and maximising value for its stakeholders, he added.

Analysts at Emkay Global Financial Services said the “results were broadly in-line with expectations as compared to the disappointment with TCS. A 3.3 per cent quarter on quarter constant currency revenue growth with 120 bps improvement in operating margins sequentially keeps the faith alive on Infosys’s recovery through FY20, though we are surprised by the fact that Infosys did not raise the revenue guidance at the upper end.”

Ahead of the results, Infosys shares rallied 4.08 per cent on the NSE and closed at Rs 815.

ICICI Securities said, "The key highlights of the quarter were, strong large deal wins which were up 3.7 per cent QoQ to $2.8 billion and robust growth in digital revenues which were up 35.9 per cent YoY.”