Infosys Q2 results: Profit rises 20.5% to Rs 4,845 crore, raises FY21 revenue guidance

Infosys, the country's second largest software exporter, on Wednesday reported 20.5 per cent growth in consolidated net profit at Rs 4,845 crore for the second quarter ended September 30, 2020, compared to Rs 4,019 crore in the same quarter last year. The Bengaluru-based IT major has raised revenue guidance for the current fiscal to 2-3 per cent in constant currency for financial year 2020-21, from 0-2 per cent earlier, on the back of strong deal wins and improved business environment. The full year operating margin guidance also hiked to 23-24 per cent from 21-23 per cent earlier.

Consolidated revenue of the company increased by 8.6 per cent to Rs 24,570 crore in Q2 FY21 as compared to Rs 22,629 crore in the September quarter of the last fiscal, Infosys said in a filing to the Bombay Stock Exchange.

During July-September quarter, the operating profit surged 26.8 per cent YoY to Rs 6,228 crore, while margin increased by 3.6 per cent YoY to 25.3 per cent.

In dollar terms, net profit rose 14.7 per cent YoY to $653 million, while revenue was up 3.2 per cent YoY at $3,312 million during September quarter of this fiscal over the year-ago period.

Revenue from digital services rose by 3.2 per cent to $ 3,312 million, which was 47.3 per cent of total revenues, Infosys said.

Commenting on Q2 earnings, Salil Parekh, Infosys, CEO and MD said, "Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2 per cent year on year overall revenue growth and 25.4 per cent growth from digital offerings, which now are at 47.3 per cent of revenues."

"Increase in revenue and margin outlook for FY21 is due to the continued trust clients have in us. I am extremely proud of our team for achieving these results in challenging business conditions globally," it added.

Industry wise, revenue growth for FY20 was led by Hi-Tech and financial services business, which grew by 24.4 per cent and 3.7 per cent, YoY.

In terms of markets, there was broad-based growth. Revenue from India grew by 15.8 per cent, followed by Rest of the world (4.5 per cent), Europe (4 per cent), North America (2.1 per cent).

During the September quarter, Infosys' active client base stood at 1,487, up from 1,364 in the year-ago quarter.

Infosys' board has also declared an interim dividend of Rs 12 per equity share. It has fixed October 26, 2020 as record date for interim dividend and November 11, 2020 as payment date.

The company also announced that Sudha Murty's term as chairperson of Infosys Foundation has been extended until December 31, 2021. Murty will retire on December 31, 2021, marking a remarkable 25-year journey of self less dedication to social causes, it said.

Ahead of Q2 results, shares of Infosys ended Wednesday's trade at Rs 1,136.10, down 1.89 per cent, against previous closing price of Rs 1,158 on the BSE.

Also Read: Infosys Q2 preview: Revenue growth around 3%; FY21 guidance to be raised

Also Read: Infosys Q1 profit jumps 11.5% to Rs 4,233 crore, pegs FY21 revenue growth at 0-2%