Infosys reports Q1 profit at Rs 5,195 cr; misses expectations

IT giant Infosys on Wednesday reported a net profit of Rs 5,195 crore for April-June quarter, 2.3 per cent higher than Rs 5,076 crore profit recorded in Q4 FY21. On a year-on-year basis, the consolidated net profit rose 22.7 per cent from Rs 4,233 crore in April-June 2020.

Though Infosys' financial performance in Q1 FY22 was below market expectations, the company raised its revenue growth outlook for the full fiscal. The company's revenue from operations surged 17.8 per cent to Rs 27,986 crore in Q1 as compared to Rs 23,665 crore in the year-ago period.

Its EBIT (earnings before interest and taxes) stood at Rs 6,603 crore during Q1, while net margin was at 23.7 per cent. In a stock exchange filing, Infosys said it signed big deals worth $2.6 billion during the June quarter. These deals comprised two new clients in the $100 million-plus category and 12 in the $10 million brackets.

"Driven by the dedication of our employees and the trust of our clients, we grew at the fastest pace in Q1 in a decade, at 16.9 per cent year-on-year and 4.8 per cent quarter-on-quarter in constant currency," Infosys CEO and MD Salil Parekh said.

He said Infosys employees demonstrated resilience and commitment in delivering for clients, which gave the company confidence to increase its revenue growth guidance to 14-16 per cent.

The financial services and retail verticals led the growth for Infosys, with both segments growing 22 per cent on a YoY basis in constant currency terms. Other verticals such as BFSI, life sciences and retail grew over 21 per cent in the quarter.

Infosys Chief Operating Officer Pravin Rao said as the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. "We plan to meet this demand by expanding our hiring programme of college graduates for FY22 to about 35,000 globally," he added.

The company's digital revenue stood at 53.9 per cent of total revenue, a year-on-year constant currency growth of 42.1 per cent. Ahead of announcement of financial results, shares of Infosys closed at Rs 1,577.4 today, 2.10 per cent or Rs 32.45 higher from yesterday's close of Rs 1,544.95, on the NSE.

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