HOME > BUSINESS > Infosys reports in-line quarter, revenue up 5.8% YoY in constant currency

Infosys reports in-line quarter, revenue up 5.8% YoY in constant currency

Infosys reported a quarter that was largely in line with expectations and said it retains its full-year revenue growth guidance at 5.5-6.5%, excluding the impact of currency movements.

With nine months gone, the company has grown at 5.6% in constant currency terms so far.

For the third quarter, revenue in constant currency was up 0.8% on quarter, and 5.8% year on year.

The company’s revenue, in dollar terms, has grown by 1% on quarter and 8.0% on year.

In rupee terms, there was a growth of 1.3%. Net profit was up 37.7 percent at Rs 5,129 crore due to lower tax expenses (see chart).

“Our Q3 performance is strong. We had 8% year-on-year growth and 24.3% operating margin with US$ 593 million of free cash flow,” said Salil Parekh, CEO & MD.

Karan Taurani of Dolat Capital said the top line growth was below his expectation, which was for 1% in constant currency terms.

Q3 operating margin improved to 24.3% from 24.2% in Q2 18.

“Our operating margins were stable on the back of broad-based improvement in operational efficiency parameters. Our cash generation continued to be robust during the quarter.” said M.D. Ranganath, CFO.

Utilization excluding trainees at all-time high of 84.9%, the company said.

Attrition declined to 15.8% from 17.2% in Q2.

The company said its operating margin guidance remains unchanged at 23%-25%.

“The numbers are broadly in line, given BFSI weakness,” said Dipesh Mehta IT analyst at SBICap Securities. “We are expecting improvement in the next two quarters.”

“Increased adoption of our digital offerings and new services helped stabilize price realization. We were able to grow client relationships across revenue categories,” said Pravin Rao, COO.

“During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continues to deliver results as reflected in lower attrition.”

The company bought back shares worth Rs 13,000 crores.

More than the quarterly numbers, the Street is looking for signs of reassurance from the new management led by Salil Parekh that it is on top of the global transition taking place in the IT services market.

Former CEO Vishal Sikka has kicked off radical changes to the company’s focus and outlook, and it remains to be seen how much of those will be kept and how much lost under the new management.

Follow ULTRA.news
Won’t be coming here again – Nandan Nilekani at Infosys Salil Parekh, Nandan Nilekani | Infosys.com "I won't be coming here again, I think," said Infosys co-founder and chairman Nandan Nilekani at the company's quarterly results press conference, indicating that he may step down from his role at Infosys sooner rather than later. ...
Infosys to bring down on-site employee numbers going forward IT services provider Infosys Ltd said it has largely exhausted the possibility of improving its profit margins by increasing employee utilization levels and will focus on bringing down on-site employee numbers to boost margins. The company reported an employee utilization leve...
TCS reports 1.2% sales growth QoQ, PAT up 1.3% TCS CEO, Tata Group Chairman & Maharashtra CM Tata Consultancy Services reported a 1.3% improvement in revenue in constant currency terms, which is less than the 1.7% improvement reported in the previous quarter, but largely in line with expectations for a tame quarter. R...
Hindustan Media Ventures reports 5% ad revenue growth Hindustan Media Ventures, the publisher of Hindustan daily, reported a 12% jump in net profit for the third quarter due to ongoing cost cutting measures. On a positive note, advertising revenue increased by Rs 8 cr, or 5%, on year during the third quarter to Rs 177 cr. Howeve...
Titan jewelry retail sales meet expectations, primary sales slow Titan's promotion for Taneira Titan Co, India's largest jewelry company, said its mainstay jewelry business saw retail sales that were in line with expectations for the October-December period, but there was a slight slowdown in sales to franchisees. It also said its pilot...
Zensar Tech CFO resigns with immediate effect Zensar Technologies, the IT services company from the RPG Group, said its chief financial officer Manoj Jaiswal resigned with immediate effect. "He will be relieved from his duties with effect from the closing of business hours on Dec 4," the company said. It was not clear...
Bangalore, ‘cultural fit’ swung it for Salil Parekh – Search Committee Head Two crucial factors that swung the decision in favor of hiring Capgemini veteran Salil Parekh as the new CEO of Infosys were his familiarity with working in the IT sector in Bangalore and his overall 'cultural fit' with the Indian IT industry, said Kiran Mazumdar-Shaw, who heads...
Boosted by Jio’s success, Mukesh Ambani unveils his future plans Mukesh Ambani, India's richest man, said telecom was the first of his big bet, and he will now use his resources to solve problems in three other difficult areas -- agriculture, education and healthcare. Speaking at the HT Leadership Summit, Ambani said his primary motivation...
Infosys launches inter-bank blockchain network Infosys said it launched Finacle Trade Connect, a network-based system of distributed record keeping for banks based on the block chain technology. A blockchain-based record is open to all participants and all participants have a copy of all the data. Moreover, all transactio...
Siemens Q2 sales hit by GST, profitability improves, orders up 10% Electrical goods maker Siemens Ltd reported an improvement in its profit margins, but underlying sales growth decelerated to 1.8% due to GST-related impact. The company usually posts 8%-15% growth in revenue. Net profit also showed a decline as last year, the company had exce...
TCS sets up new delivery center in Hyderabad for US-based Zebra Technologies Tata Consultancy Services, India's biggest foreign exchange generator, said it has set up a Global Development Center in Hyderabad to cater to Zebra Technologies, a billion-dollar US corporation that specializes in tracking technologies such as bar codes and RFID. The new cen...
NMDC Q2 sales up 39%, PBT up 19% India's largest iron ore producer NMDC has reported a 39% increase in its revenue for the September quarter compared to the same period last year. Net profit increased 10%. The increase in revenue and profit was mainly due to increase in pricing and volume, the company said. ...
Tata Global says lower costs helped Q2 profit growth Tata Global Beverages reported a 4.4% increase in revenue for the September quarter, while net profit jumped to 144 cr from Rs 127 cr in the year-ago quarter. Revenue declined marginally on a sequential basis, while net profit was higher by Rs 20 cr. The company said reven...
Zydus Cadila has an excellent quarter in Q2, PAT up 33% Pharma giant Zydus Cadila reported excellent numbers for the September quarter, led by rising US revenue that lifted its margins and profits. For the second quarter ended September 30, 2017, Zydus Cadila reported Earnings before Interest, Depreciation and Tax (EBIDTA) of Rs. 8...
Tata Chemicals PAT up 52% despite GST impact Tata Chemicals Limited reported flat revenue for the quarter ended September, partly due to the impact of the GST, but net profit from continuing operations was up 52%. On a like to like basis, said the company, revenue was up 2.6%. As reported, revenue was at 3,462 Cr and ...
Idea Cellular loss widens, ARPU down, VoLTE in early 2018 Idea Cellular reported a 19.7% year-on-year decline in its standalone revenue for the second quarter of this financial year, while net loss increased to Rs 1,176 cr from 617 cr in the preceding quarter and a net profit of 4.3 cr in the year-ago period. The revenue per subscri...
Sun TV continues slow ad growth trend, but subscription fees jump Chennai-based Sun TV continued to report decent overall growth in the July-September quarter as well, but advertising sales continued to lag behind peers such as Zee Entertainment. The company has been ‘suffering from’ poor advertisement growth in the last couple of years, ev...
Oracle Financial Services has yet another stellar quarter, sales up 12% Banking software maker Oracle Financial Services Software, formerly known as iflex, reported strong year-on-year numbers characterized by robust revenue growth and strict control over costs, however revenue slipped on a sequential basis. Consolidated revenue for the quarter w...
Amara Raja Batteries sees telecom impact on Q2 sales Amara Raja Batteries reported a modest improvement in its results for the September quarter, with operating profit edging above last year's level by a whisker. Growth would have been faster, if it hadn't been for the disruption in the telecom market, the company said. The ...
Jagran Prakashan profits hit by poor revenue growth, blames GST Jagran Prakashan reported disappointing results for the September quarter, continuing the trend of print and newspaper companies struggling in recent quarters. Total revenue from operations fell to Rs 566.55 cr for the three months ended September, down from 591.33 cr in the ...