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Infosys carves out small Q1 profit

Staff reporter, New Delhi
14/07/2017   0 Comments

The IT major Infosys’s consolidated net profit was $541 million for the quarter ended June 30, --- a Q-o-Q decline of 0.4% and YoY growth of 5.8%.
 
So in a way India's No. 2 software services exporter, has managed to carve out a slight rise in first-quarter profit. But the outlook for more revenue growth  remains static.
 
Country’s  $150 billion software services sector faces headwinds from the US market, its main client country as President Donald Trump reviews of a visa programme for highly-skilled workers and giving preference to Americans.
 
The company has retained its FY 18 revenue guidance at 6.5%-8.5% in constant currency. FY 18 operating margin guidance has been retained at 23%-25%.
 The company’s consolidated revenues were $2,651 million for the quarter ended June 30, 2017 – Q-o-Q growth of 3.2% in reported terms,  2.7% in constant currency terms. The Y-o-Y growth of 6.0% in reported terms; 6.3% in constant currency terms.
 
Its Operating profit was $638 million for the quarter ended June 30, 2017—Q-o-Q growth of 0.7%,  YoY growth of 6.0%.
 
Its  Q1 revenues grew sequentially by 3.2% in USD terms and 2.7% in constant currency terms.
But its Q1 revenues in rupee terms marginally declined 0.2% sequentially while it grew 1.8% year-on-year.
 
The company Q1 operating margin was at 24.1%, flat as compared to Q1of  2017 fiscal. The utilization excluding trainees increased by 2% to 84%.
 
Infosys’s  operating cash flow was Rs 4,151 crore, as compared to Rs 3,625 crore in Q4 17.
 
Its liquid assets including cash and cash equivalents and investments were  Rs 39,335 crore as on June 30, 2017 as compared to Rs 38,773 crore as on March 31, 2017.
 
Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts– revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results. Iam encouraged by the uptick in revenue per employee for six quarters in a row, and the strong momentum in our new high growth services and software, as we accelerate our focus on innovation-led growth.” said Vishal Sikka, CEO.
 “We had broad-based growth across geographical and industry segments. Our initiatives on operational discipline led to record levels of utilization and Better realization during the quarter.” said U B Pravin Rao, COO.
 
“Our new services and software offerings are helping us strengthen our positioning in the market.  our relentless focus on strong cash generation led to a healthy operating cash flow. Further, our continued emphasis on operational efficiencies enabled us to mitigate the impact of margin headwinds during the quarter”, said M. D. Ranganath, CFO. “We successfully navigated yet another quarter of significant currency volatility through our hedging”, he added.

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