Firm raises revenue outlook for year

Tech major Infosys on Friday reported a 2.2% year-on-year dip in net profit to ₹4,019 crore, during the second quarter ended in September, against ₹4,110 crore for the corresponding quarter a year ago.

However, quarter on quarter, the company’s net profit grew at 5.8% from ₹3,798 crore.

In Q2, the company posted total revenue of ₹22,629 crore, a 9.8% year-on-year growth over last year’s ₹20,609 crore. Over the previous quarter, its revenue grew 3.8% from ₹21,803 crore.

Infosys CEO and MD Salil Parekh said the company’s 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 we are progressing well in our journey of client-centricity and maximising value for our stakeholders,” he said.

The company said seven large segments had shown double digit growth in Q2. In energy, utilities and financial services, it saw a strong business environment.

Overall manufacturing was also in a robust position; however, the company has been witnessing some weakness in European banks and capital markets, it said.

“We see Europe as a geography to be softer. The view from a macro perspective is, European market is slower and there is some impact of Brexit there. We have increased the lower end of our guidance from 8.5-10% to 9- 10%. We remain confident on how this year will play out,’’ Mr. Parekh added.

Company’s revenue from digital transformation has grew from 31% in Q2FY19 to 38.3% in Q2FY20. Digital accounted for 35.7% share in the June quarter.

The company is currently working on digital pricing, so that it can command a premium for such services by creating ‘unique tracks for cost optimisation’.

Infosys said it had completed its share buyback of ₹8,260 crore on August 26, 2019 and with this, it completed its additional capital return programme of up to ₹13,000 crore announced in April 2018.