The IT services major posted a 12 per cent rise in March quarter net profit at Rs 5,686 crore compared with Rs 5,076 crore the same time a year ago. The figure fell short of Rs 5,850 crore predicted by an ET NOW poll of analysts.
Infosys’ scrip fell to a low of Rs 1,592.05 as against Rs 1,748.65 at previous close on the BSE. The stock was last trading 6 per cent lower.
The firm’s revenue growth at 1.2 per cent sequentially in constant currency terms missed consensus estimate of 3 per cent growth partly due to a one-off client-specific issue, while the EBIT margin of 21.5 per cent also fell below consensus estimate of 23.2 per cent.
“The revenue and operating margin was below expectation for the quarter. However, we see it as one time blip, as it was due to many one-offs. Overall performance for FY22 remained strong at 20 per cent plus revenue growth in dollar terms. The outlook remains strong led by robust demand environment and that is also reflected in 13-15 per cent revenue growth guidance in CC terms for FY23. We do expect certain cost related to travel and admin to come back but with improving employee pyramid and moderation in employee attrition, any further downward pressure on margin to be limited,” brokerage YES Securities said in a note.
Revenues in dollar terms stood at $4,280 million, up 18.5 per cent YoY. Revenues were up 1.2 per cent sequentially (20.6 per cent YoY) in constant currency terms.
India’s second largest IT company has guided for revenue growth of 13-15 per cent YoY in constant currency for FY23, while it guided for an operating margin of 21-23 per cent for the financial year.
Infosys said it won $2.3 billion in total contract value (TCV) for the quarter, taking the yearly deal wins to $9.5 billion.
The IT major has guided for revenue growth of 13-15 per cent YoY in constant currency for FY23, while it guided for an operating margin of 21-23 per cent for the financial year.
The company also said it is moving its business out of Russia, joining a growing roster of companies pulling out of the country following Moscow’s invasion of Ukraine.
Headcounts for the quarter stood at 3,14,015 compared with 2,92,067 in the December quarter and 2,59,619 in the year-ago quarter.