Infosys Q1 net profit rises 3.7% to Rs 3,612 crore; board approves 1:1 bonus

The country’s second-largest software services major, Infosys, has reported 3.7 per cent growth in consolidated net profit at Rs 3,612 crore for the quarter ended June 30, 2018, compared to a net profit of Rs 3,483 crore in the year-ago period.

Revenue from operations of the Bengaluru-based firm grew 12 per cent to Rs 19,128 crore in the April-June quarter compared with Rs 17,078 crore in the year-ago period, Infosys said in a BSE filing today.

Infosys board has approved issuance of one free share for every share held (that is a 1:1 bonus issue).

“The board in its meeting…has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined,” the company said in the regulatory filing.

Revenue growth outlook

Infosys has maintained revenue growth outlook at 6-8 per cent in constant currency terms for fiscal 2019. It had also maintained FY 2018-19 operating margin guidance in the range of 22-24 per cent.

“The strong revenue and margin performance in this quarter shows that our dual emphasis on agile digital and AI (artificial intelligence) driven core services is resonating with our clients,” Salil Parekh, CEO and MD of the company, said.

He added that the company sees “good traction in the market”.

The results were announced after the market hours. Infosys shares closed 1.12 per cent higher at Rs 1,309.1 apiece on BSE.

The company had said in April that it will pay up to Rs 13,000 crore to shareholders, including Rs 2,600 crore, through special dividend, as the company looked to meet shareholder demands for higher returns.

Infosys had also said that it will continue with its policy of returning up to 70 per cent of its free cash.

TCS beats street estimates

Infosys’ scorecard came just days after India’s largest software exporter, TCS, posting a 23.4 per cent rise in consolidated net profit at Rs 7,340 crore for the June quarter, delivering what analysts said were street-beating results.

The Tata Group company saw its income from operations growing at 15.8 per cent to Rs 34,261 crore for the first three months of the current financial year, registering a strong growth on all counts.

Source: The Hindu