IT major Infosys today announced its earnings for the quarter ended September 30 quarter, meeting the Street's estimates on most parameters. The Bengaluru-based IT company reported a 6% sequential rise in net profit to ₹4,019 crore while revenues increased to ₹22,629 crore, a growth of 3.8% on a sequential basis. Infosys also raised the lower end of FY20 revenue guidance.

Commenting on Q2 performance, CEO 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 we are progressing well in our journey of client-centricity and maximizing value for our stakeholders," he added.

Infosys won large deals worth $2.8 billion in the second quarter, said COO Pravin Rao.

Infosys reported an expansion in operating margin to 21.7%, driven by improvements in operational parameters and cost efficiencies, said CFO Nilanjan Roy.

Infosys shares today ended 4% higher at ₹815. Earnings were announced after market close.

Here are highlights of Infosys Q2 earnings:

Revenues grew year-on-year by 9.9% in USD; 11.4% in constant currency

Revenues grew sequentially by 2.5% in USD; 3.3% in constant currency

Digital revenues at $1,230 million (38.3% of total revenues), year-on-year growth of 38.4% and sequential growth of 10.7% in constant currency

Operating margin at 21.7%, 1.2% improvement over Q1 20

H1 revenues grew by 11.9% in constant currency

H1 operating margin at 21.1%, within the margin guidance for the year

Announced interim dividend of ₹8 per share

Increased lower end of FY20 revenue guidance; revised guidance is 9%-10% in constant currency

Maintained FY20 operating margin guidance range of 21%-23%

Attrition on a annualised basis dropped to 21.7% in September quarter as compared to 23.4% in June quarter

On capital allocation policy, Infosys said that it completed its share buyback of ₹8,260 crore on 26th August, 2019. With this, the company completed the additional capital return program of up to ₹13,000 crore announced in April 2018.

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