Infosys Q1FY23 Result: IT major Infosys on Sunday reported a consolidated net profit of Rs 5,360 crore for the June 2022 quarter, a growth of 3.2 per cent as compared to Rs 5,195 crore in the year-ago quarter. The company’s revenue grew 23.6 per cent to Rs 34,470 crore in the June 2021 quarter, from Rs 27,896 crore. Sequentially, Infosys’ net profit declined by 5.7 per cent as compared to Rs 5,686 crore in the March 2022 quarter.
According to a BSE filing, on a quarter-on-quarter basis, its revenue grew 6.8 per cent during April-June 2022 as against Rs 32,276 crore in the previous quarter.
For the current fiscal year 2022-23, Infosys has set a revenue growth target of 14-16 per cent in constant currency, which is higher than the earlier targeted 13-15 per cent. While the operating margin is expected to grow by 21-23 per cent in FY23.
According to the filing, the Bengaluru-based IT company’s total operating expenses grew 14.4 per cent year-on-year to Rs 3,187 crore during April-June 2022 as against Rs 2,787 crore a year ago. Its operating profit jumped 4.7 per cent to Rs 6,914 crore in the June 2022 quarter, as against Rs 6,603 crore a year ago.
However, its operating margin stood at 3.6 percentage points from 20.1 per cent in the first quarter of FY23, up from 23.7 per cent in the June 2021 quarter.
Infosys CEO and MD Salil Parekh said in a statement, “Our strong overall performance in the first quarter amid an uncertain economic environment is a testament to our seamless resilience as an organization, our industry-leading digital capabilities and continued customer-relevance . We continue to gain market share and see a significant pipeline driven by our Cobalt Cloud capabilities and differentiated digital value proposition.
He added that the company is investing in rapid talent expansion while ensuring rewarding careers for its employees, to better meet the emerging market opportunities. This has resulted in a strong performance in Q1 and an increase of 14-16 per cent over FY23 revenue guidance.
The company said in the statement that in constant currency terms, annual growth across all business segments was in double digits. Its revenue from digital services accounted for 61 percent of total revenue, a 37.5 percent increase in constant currency.
Its Chief Financial Officer Nilanjan Roy said, “We are driving strong growth momentum with strategic investments in talent through recruitment and competitive compensation revision. While this will impact margins in the immediate term, it is expected That this will reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiencies across operations.”
He said the continued high focus on cash led to strong FCF (free cash flow) net profit conversion at 95.2 per cent and improvement in ROE (return on equity) to 31 per cent.
The total contract value of big deal wins during the June 2022 quarter was $1.7 billion, down from $2.3 billion in the previous quarter.
The company’s total employee strength as on June 30, 2022 was 3,35,186, which included 21,171 employees during the first quarter of 2022-23. According to a BSE filing, its attractiveness for IT services rose to 28.4 per cent during the June 2022 quarter, from 27.7 per cent on a previous 12-month basis.
On Friday, Infosys shares closed at Rs 1,506.30, down Rs 26.55, or 1.73 per cent, on the BSE.
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