Infosys Q2 results: Net profit falls 2.2% to Rs 4,019 crore; board approves interim dividend

Infosys reported a 2.21 per cent decline in its consolidated net profit for the quarter ended September 30, 2019. The IT major reported a net profit of Rs 4,019 crore during the quarter under review, as opposed to Rs 4,110 crore reported during the corresponding quarter last year. Consolidated revenue from operations during the second quarter of current fiscal was Rs 22,629 crore, almost 10 per cent higher than Rs 20,609 crore seen during the corresponding period last year.

In standalone terms, Infosys reported a net profit of Rs 3,829 crore during the September quarter of this fiscal, 1.2 per cent lower than Rs 3,879 crore during the similar period last fiscal. Total standalone revenue during this quarter was reported at Rs 19,666 crore, up 7.5 per cent in comparison to Rs 18,297 crore reported in the year-ago period.

"Our performance was robust on multiple dimensions - revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition. All these are clear signs that we are progressing well in our journey of client-centricity and maximising value for our stakeholders," said Infosys CEO and MD Salil Parekh.

ALSO READ: TCS Q2 profit up 2% at Rs 8,042 crore, misses estimates

Infosys' operating profit for Q2 FY2020 was 4,912 crore, following an increase of 0.4 per cent on yearly basis, whereas operating margin was 21.7 per cent. "We saw expansion in operating margins during the quarter driven by improvement in operational parameters and cost efficiencies. We took the first step towards implementation of our new capital allocation policy by increasing interim dividend by over 14 per cent compared to FY 19," said Infosys CFO Nilanjan Roy.

Infosys increased lower end of FY20 revenue guidance. The revised guidance is 9-10 per cent in constant currency terms. The company maintained its FY20 operating margin guidance range of 21-23 per cent.

The Infosys board also announced an interim dividend of Rs 8 per equity share. The company has fixed October 23, 2019 as record date for interim dividend and October 30, 2019 as the payment date.

ALSO READ: 'We should use technology to amplify human capacity, not as replacement,' says Nandan Nilekani