Ten key takeaways from Infosys' Q2FY16 results

India's second largest software services firm Infosys declared its September quarter financial results on Monday, kicking off the second quarter earnings season for the fiscal year 2015-16.

Here are 10 key takeaways from IT giant's Q2 FY16 numbers:

1) Revenue growth

The Bangaluru-based firm's consolidated revenue was up 17.2 per cent to Rs 15,635 crore in the September quarter from Rs 13,342 crore in the year-ago period. It had reported revenues of Rs 14,354 crore for the April-June quarter of this financial year.

2) Net profit

Infosys posted 9.8 per cent increase in consolidated net profit to Rs 3,398 crore for the quarter ended September 30, 2015. It had reported a net profit of Rs 3,096 crore in the year-ago period and Rs 3,030 crore in the June quarter of the fiscal year 2015-16.

3) Interim dividend

The software giant announced 200 per cent interim dividend or Rs 10 for each share of Rs 5 at par for first six months (April-September) of the fiscal year 2015-16. The half-yearly dividend, however, is 400 per cent less than 600 per cent or Rs 30 per share the company gave for same period in the fiscal year 2014-15.

4) Annual revenue guidance

The company revised its consolidated revenue guidance for the fiscal year 2015-16 two percent upwards in rupee terms but lowered marginally in dollar terms owing to currency volatility. The IT firm said consolidated revenue for FY 2016 would grow 13-15 per cent in rupee terms and 6.4-8.4 per cent in dollar terms, but remain at 10-12 per cent in constant currency in both terms. It had reported Rs 53,319 crore revenue in the fiscal year 2014-15 and $8.7 billion, which was 6.4 per cent growth YoY in rupee terms and 5.6 per cent in dollar terms.

5) Earnings per share

Infosys' earnings per share (EPS) grew 9.1 per cent to $0.23 for the quarter ended September 30, 2015 as compared to the June quarter, while 1.6 per cent in the year-ago period.

6) Management rejig

The company's Chief Financial Officer Rajiv Bansal has resigned. He will be replaced by M D Ranganath, who has been with the company for nearly 15 years holding several leadership positions. Former Philips executive Krish Shankar will take over as the global HR head in Infosys, a post that had been lying vacant for almost 6 months.

7) Attrition

Attrition rate of Infosys increased to 19.9 per cent from 19.2 per cent on quarter on quarter basis. CEO Vishal Sikka's employee morale-boosting measures had help the company log a noticeable drop in attrition in the June quarter, making it an IT firm with lowest attrition rate.
 
8) Client Wins

The company added a total of 82 clients in the second quarter, of which 3 were from 50-million plus category. With this, the total number of company's clients exceeded 1,000-mark. 5 large deals were signed with TCV of $983 million in Q2. In India, the Goods and Services Tax Network (GSTN), a non-government, non-profit, private limited company has awarded Infosys a Rs 1,380 crore contract to build and maintain the GSTN system for five years.

9) Enhanced Service Offerings

During the quarter, on August 20, the company announced the launch of Aikido, comprising three enhanced service offerings in Knowledge-Based IT (KBIT), Platforms, and Design Thinking. Ki or Knowledge-Based IT, which is all about the renewal of existing landscapes, capturing the knowledge and know-how in an organisation and bringing new technologies and tools AI, APIs, cloud, automation into the company's traditional engagements in application maintenance, testing and BPO together.

10) 2015 Incentive Compensation Plan

The Board approved the 2015 Incentive Compensation Plan, amending the existing 2011 RSU Plan. The 2011 RSU plan has been amended in accordance with the Sebi (share based employee benefits) regulations, 2014 and will be issued as the 2015 Incentive Compensation Plan. The grants made under the 2011 RSU plan will continue to be administered and implemented by the 2015 Incentive Compensation Plan. The 2015 Incentive Compensation Plan will be subject to the approval of shareholders, and the Board further approved the issuance of new shares, so as not to cumulatively exceed 2% of the shares outstanding, in order to support grants made over time under the 2015 Incentive Compensation Plan. Approval to issue such shares under the 2015 Incentive Compensation plan will be subject to the approval of shareholders.