Infosys’ net profit rises 10.3%, scores big on deals

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India’s second-largest software exporter Infosys’ net profit rose 10.3% year-on-year to ₹4,110 crore for the second quarter ended September as financial services and retail sectors buoyed up revenue and the Bengaluru-based firm posted bigger client wins.

Last week, Tata Consultancy Services, the country’s biggest software exporter, had reported a 22.57% rise in net profit at ₹7,901 crore. Revenue for the quarter increased from ₹30,541 crore to ₹36,854 crore. Infosys’s digital revenues stood at $905 million accounting for 31% of total revenues of ₹18,297 crore. Revenue from the financial sector grew by 14.2% to ₹6,644 crore while retail rose 23.7% to ₹3,469 crore.

Salil Parekh, CEO and MD said, “We are delighted with our broad-based growth across all business segments and geographies during the quarter, This is a testimony to our strong client relationships, digital led full-service capabilities, and intense focus on the needs of our clients. Large deal wins at over $2 billion during the quarter demonstrate our increased client relevance and also give us better growth visibility for the near-term.”

Revenue guidance in constant currency for the full year was retained at between 6% and 8% and operating margin guidance was also maintained at between 22% and 24%.

M.D. Ranganath, chief financial officer, who stepped down as the CFO, in August said: “Operating margins for the quarter as well as for the half year was at 23.7%, near the top end of our guidance band. We had a laser sharp focus on efficiency. Currency did benefit and at the same time we had comprehensive investments.”

“Operating cash flow was over $1 billion during the first half of the year and ROE was at 24.7%. We will continue to make strategic investments in digital to leverage opportunities and at the same time keep a sharp focus on key operational efficiency parameters,” he added.

The attrition rate of the company stood at 22.2% in the second quarter compared with 21.4% a year earlier.

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