Infosys Q3 net profit slips 12% to Rs 3,609 crore; board approves share buyback, special dividend
BusinessToday.In January 11, 2019
Infosys reported a 12 per cent decline in its net profit on a quarterly basis for the quarter ended December 31, 2018. The company posted net profit of Rs 3,609 crore for the quarter under observation, as opposed to the Rs 4,110 crore registered in the previous quarter. On year-on-year basis, the Indian IT major saw its net profit rise by 30 per cent against Rs 5,129 crore reported in the December quarter last fiscal.
Infosys saw its revenue from operations rise to Rs 21,400 crore in the December quarter of this fiscal from Rs 20,609 crore in the September quarter, amounting to a quarter-on-quarter increase of 3.8 per cent. Profit before tax slipped almost 10 per cent on a quarterly basis to Rs 5,192 crore in Q3 FY19. Operating profit also disappointed, as it slipped 1.3 per cent Q-o-Q to Rs 4,830 crore.
Infosys posted growth in revenue in US dollar terms remained in line with estimates as they grew to $2987 million, with an increase of 8.4 per cent on a yearly basis.
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"With increased client relevance, we saw double digit (10.1%) year-on-year growth in Q3 on a constant currency basis. We also had another strong quarter in our digital business with 33.1% growth and large deals at $1.57 billion which gives us confidence entering 2019," said Salil Parekh, CEO and MD on the Infosys Q3 results.
Infosys announced a share buyback worth Rs 8,260 crore under open market route at a maximum price of Rs 800 per share. The company will buyback shares from its equity shareholders to implement the Capital Allocation Policy.
"The maximum buyback size does not include any expenses or transaction costs incurred or to be incurred for the buyback," Infosys said in its statement.
The company also announced a special dividend of Rs 4 per share.
Based on recommendations from the Nomination and Remuneration Committee, Infosys board approved the reappointment of Kiran Mazumdar-Shaw Based for her second term as the Lead Independent Director. Mazumdar-Shaw will serve in this capacity from April 1, 2019 to March 22, 2023, subject to shareholders' approval, the company said.
The Infosys board also approved grant of annual Restricted Stock Units (RSUs) with a value of Rs 3.25 crores to company CEO Salil Parekh and 68,250 RSUs to COO UB Pravin Rao.
"I am delighted that the Infosys Board of Directors has unanimously recommended Kiran Mazumdar-Shaw for reappointment as the Lead Independent Director," said Infosys Chairman Nandan Nilekani.