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Infosys Q1 net profit up 3.7% to Rs 3,612 cr

Infosys board has approved issuance of one free share for every share held 

Bengaluru: The country’s second-largest software services major Infosys on Friday reported 3.7 per cent growth in consolidated net profit at Rs 3,612 crore for the quarter ended on June 30, 2018, compared to a net profit of Rs 3,483 crore in the year-ago period.

Revenues from operations of the Bengaluru-based firm grew 12 % to Rs 19,128 crore in the April-June quarter compared to Rs 17,078 crore in the year-ago period, Infosys said in a BSE filing.

Infosys board has approved issuance of one free share for every share held (that is a 1:1 bonus issue).

“The Board in its meeting…has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined,” the company said in the regulatory filing.

Infosys has maintained revenue growth outlook at 6-8 per cent in constant currency for fiscal 2019. It had also maintained FY 2018-19 operating margin guidance in the range of 22-24 per cent.

“The strong revenue and margin performance in this quarter shows that our dual emphasis on agile digital and AI (artificial intelligence) driven core services is resonating with our clients”, Salil Parekh, CEO and MD of the company said.

To pay Rs 13,000 crore to shareholders

  • The company had said in April that it will pay up to Rs13,000 cr to shareholders including Rs2,600 crore through special dividend, as it looked to meet shareholder demands for higher returns. Infy had also then said that it will continue with its policy of returning up to 70% of its free cash.
  • Infosys’ scorecard came just days after India’s largest software exporter TCS posting a 23.4% rise in consolidated net profit to Rs7,340 crore for June quarter, delivering what analysts said were street-beating results.
  • The Tata Group company saw its income from operations growing at 15.8% to Rs34,261 crore for the first three months of the current financial year, registering strong growth on all counts as per the official data.

 See good demand environment across US, Europe: Infosys CEO

  • Infosys said it sees a ‘good’ demand environment in large markets such as the US and Europe, but stuck to the previously-set revenue growth target of 6-8% for the full financial year.
  • “Overall, we see a good demand environment across the US, Europe and Asia Pacific. In terms of the sector demand, we see strength in energy, utilities, retail, insurance and manufacturing,” Infosys CEO, Salil Parekh said.
  • Parekh was brought in as the CEO to restore growth and order after a public spat between key founders and past management.
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