Infosys Q1 results: Profit rises 12% to Rs 4,233 crore, beats Street estimates

Infosys on Wednesday posted a 11.5 per cent year-on-year (YoY) growth in net profit at Rs 4,233 crore for the quarter ended June 30. It had reported a net profit of Rs 3,798 crore in the corresponding quarter last year.

Analysts in an ET NOW poll had projected the figure at Rs 3,820 crore.

Consolidated revenue of the company increased 8.5 per cent YoY to Rs 23,665 crore in Q1FY21, over Rs 21,803 crore in the same period last year. Analysts have projected the figure at Rs 22,600 crore.

“Operating margin expanded to 22.7 per cent driven by preemptive deployment of our strategic cost levers along with tactical opportunities triggered by the Covid situation”, said Nilanjan Roy, Chief Financial Officer. “Collections were robust and capex was focused, which led to a 50 per cent year on year increase in free cash flows. Our liquid and debt free balance sheet is a huge source of strength in these times.”

The company announced large deal wins worth $1.74 billion during the quarter. In the US dollar terms, revenue of the company declined year-on-year by 0.3 per cent but grew by 1.5 per cent in constant currency.

Digital revenues were at $1,389 million (44.5 per cent of total revenues), year-on-year growth of 25.5 per cent in constant currency. Free cash flow stood at Rs 5,524 crore with a year-on-year growth of 63.5 per cent.

“Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients’ business priorities which is resonating with them in these times. It also demonstrates the remarkable dedication of our employees and leadership during this period”, said Salil Parekh, CEO and Managing Director of Infosys. “Our confidence and visibility for the rest of the year is improving driven by our Q1 performance and large deal wins.”

Ahead of its earnings, the stock climbed 6.16 per cent to Rs 831.45, and was the biggest positive contributor towards Sensex.