Infosys Q1 profit rises 4% YoY to Rs 3,612 crore; firm announces bonus issue in 1:1 ratio

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NEW DELHI: India’s second largest IT firm Infosys on Friday reported 3.70 per cent YoY jump in profit at Rs 3,612 crore for the quarter ended June 30. Analysts in an ETNow poll had predicted a profit of Rs 3,731.80 crore.

Profit was marginally impacted as the company recorded a reduction in the fair value of disposal group held for sale amounting to Rs 270 crore in respect of Panaya.

Consequently, profit for the qurter decreased by Rs 270 crore, resulting in a decrease in basic earnings per equity share by Rs 1.24 for the quarter.

Infosys maintained its FY19 revenue guidance in constant currency at 6-8 per cent. The guidance for operating margin is retained at 22-24 per cent.

Revenue for the quarter came in at Rs 19,128 crore, up 12 per cent on a YoY basis.

In dollar terms, revenue rose 6.8 per cent on a yearly basis. Sales were up 6 per cent in constant currency terms. Operating margins came in at 23.7 per cent, which was at the upper quartile of the guidance.

“The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients,” said Salil Parekh, CEO and MD.

The IT major approved 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 IT company added four clients in $100 million plus region during the quarter.

Source: Economic Times