Infosys net profit surges 10% to ₹4,110 crore

Infosys, India’s second largest software service exporter, on Tuesday said its consolidated net profit in the July-September quarter grew 10.3% to ₹4,110 crore, from ₹3,726 crore a year ago, due to better digital offerings and broad-based growth across business segments.

Revenue rose 17.3% to ₹20,609 crore, from ₹17,567 crore in the corresponding quarter last year. In constant currency terms, it posted a 4.2% growth in revenue over the quarter ended June. Its digital revenue in the September quarter, in constant currency terms, increased 33.5% over a year to Rs 90.5 crore, contributing 31% to total revenue.

In the September quarter, financial services contributed 32.2% to total revenue, registering a 4.7% sequential growth. North America comprised 60.3% of its total revenue. The IT major has reported a 23.7% growth in operating margin.

“Operating cash flow was over $1 billion during the first half of the year and ROE (return on equity) was at 24.7%. We will continue to make strategic investments in digital to leverage opportunities, and at the same time keep sharp focus on key operational efficiency parameters," said M D Ranganath, chief financial officer, Infosys.

Earlier this month, IT major Tata Consultancy Services (TCS) reported a 20.7% rise in revenue in the July–September quarter at ₹36,854 crore, from ₹30,541 crore a year ago.

Constant currencies are exchange rates which eliminate fluctuations while calculating financial performance numbers.

Infosys’s dollar revenue registered a 3.2% sequential growth at $2,921 million.

“We are delighted with our broad-based growth across all business segments and geographies during the quarter”, said Salil Parekh, managing director and chief executive of Infosys. "This is a testimony to our strong client relationships, digital-led full service capabilities, and intense focus on the needs of our clients."

Analysts had expected Infosys to report stable growth. IDBI Capital Markets had forecast a 3.1% sequential revenue growth with a cross-currency headwind of 70 basis points.

“Large deal wins at over $2 billion during the quarter demonstrate our increased client relevance and also give us better growth visibility for the near term," Parekh added.

Infosys has declared an interim dividend of ₹7 per equity share.

The Infosys stock on Tuesday fell 0.39% to close at Rs 696.4 on the BSE, while the benchmark BSE Sensex gained 0.85% to end at 35,162.48 points. The company's results were announced after market hours.