The country's second largest IT services company - Infosys - on Thursday informed stock exchanges that its net profit in September quarter rose 12 per cent sequentially to Rs 6,021 crore from Rs 5,360 crore in the previous quarter on the back of large deal wins. On an annual basis, Infosys' profit advanced 11 per cent.
Its revenue from operations rose 6 per cent sequentially to Rs 36,538 crore. In constant currency terms, its revenue rose 4 per cent sequentially and 18 per cent annually. In dollar terms, Infosys reported revenue of $4,555 million, registering an annual growth of 13.9 per cent.
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Year on year growth was in double digits across all business segments in constant currency terms. Digital comprised 61.8 per cent of overall revenues and grew at 31.2 per cent in constant currency. Operating margin for the quarter increased sequentially by 140 basis points to 21.5 per cent. Large deal TCV for the quarter was robust at $2.7 billion, highest in last 7 quarters, Infosys said in a press release.
Infosys revised its FY23 revenue guidance to 15 per cent-16 per cent and operating margin guidance was also revised to 21 per cent-22 per cent.
Infosys board of directors approved share buyback plan worth Rs 9,300 crore at Rs 1,850 per share. The buyback price is 30 per cent higher than the stock's closing price of Rs 1,419.75. The company also announced an interim dividend of Rs 16.5 per share.
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“Our strong large deal wins and steady all-round growth in Q2 reflect the deep relevance and differentiation of our digital and cloud solutions for clients as they navigate their business transformation”, said Salil Parekh, CEO and MD. “While concerns around the economic outlook persist, our demand pipeline is strong as clients remain confident in our ability to deliver the value they seek, both on the growth and efficiency of their businesses. This is reflected in our revised revenue guidance of 15 per cent-16 per cent for FY 23”, he added.
“In line with the capital allocation policy, the Board has announced an interim dividend of Rs 16.50 per share, an increase of 10 per cent over FY 22 interim dividend and an open market share buyback of Rs 9,300 crores,” said Nilanjan Roy, Chief Financial Officer. “Operating margins in Q2 expanded sequentially by 150 bps, helped by our operational rigor. While supply side challenges are gradually abating as reflected in the reducing attrition rates, they continue to exert pressure on our cost structure," he added.
The company's attrition rate declined for third quarter in a row and came in at 27.1 per cent.
Infosys stock price closed 0.64 per cent lower at Rs 1,419.75 ahead of its earnings announcement.
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