Infosys share price fell in early trade today on profit booking after the IT firm reported Q2 earnings that came in line with expectations. Infosys share price lost up to 4.25% at Rs 781 on BSE. On NSE, the stock fell up to 4.27% to Rs 780 compared to the previous close of Rs 814.80.
Infosys share price opened with a loss of 3.27% at Rs 789 today compared to the previous close of Rs 815.70 on BSE. The IT firm's share has gained 20% since the beginning of this year and risen 16.63% during last one year. Infosys on Friday reported a 2.21 per cent decline in its consolidated net profit for the quarter ended September 30, 2019.
The IT major reported a net profit of Rs 4,019 crore during the quarter under review, as opposed to Rs 4,110 crore reported during the corresponding quarter last year.
Consolidated revenue from operations during the second quarter of current fiscal was Rs 22,629 crore, almost 10 per cent higher than Rs 20,609 crore seen during the corresponding period last year. In standalone terms, Infosys reported a net profit of Rs 3,829 crore during the September quarter of this fiscal, 1.2 per cent lower than Rs 3,879 crore during the similar period last fiscal.
Total standalone revenue during this quarter was reported at Rs 19,666 crore, up 7.5 per cent in comparison to Rs 18,297 crore reported in the year-ago period.
Emkay Global Financial Services in a report said Infosys' September quarter results were broadly in-line with expectations as compared to the disappointment with TCS. A 3.3% quarter on quarter revenue growth with 120 bps improvement in operating margins sequentially keeps the faith alive on Infosys' recovery through FY20 though we are surprised by the fact that the firm did not raise the revenue guidance at the upper end despite the confidence of strong order booking as well as H1FY20 revenue performance.
"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 maximising value for our stakeholders," said Infosys CEO and MD Salil Parekh.
By Aseem Thapliyal