Indias No.2 software services exporter Infosys on Tuesday beat Street estimates to post a 10.3 per cent growth in quarterly profit, boosted mainly by large deal wins.
September quarter profit rose to Rs 4,110 crore from Rs 3,726 crore a year ago. Analysts had estimated the profit figure at Rs 4,051 crore. Revenue from operations grew 17.3 per cent to Rs 20,609 crore.
Here are the key highlights from the Sept quarter earnings
Digital services picking up pace: The company said revenues from the digital services vertical jumped to 31 per cent during the quarter against 28.4 per cent in first quarter and 25.2 per cent in the year-ago quarter. Among different verticals, retail (up 5.9 per cent), financials (5.8 per cent) and manufacturing (4.8 per cent) reported maximum sequential growth. “We will continue to make strategic investments on the digital vertical to leverage opportunities and at the same time keep a sharp focus on key operational parameters,” CFO MD Ranganath said.
Top 25 clients accounted for 34.7% revenues: While the companys top 10 clients accounted for over 19 per cent of top line, top 25 clients comprised 34.7 per cent of September quarter revenue compared with 36 per cent in the same quarter last year. The company added clients in $1 million (633 from 627), $10 million (205 from 200) and $50 million ( 58 from 56) segments on a sequential basis. However, the number of $100 million-plus clients dropped to 23 from 24 in the first quarter. The company reported large deal wins valued at over $2 billion during the quarter.
Revenue per employee inches lower: The company said revenue per employee dropped to $54,700 in September quarter from $54,900 in June quarter. It was $52,700 in the year-ago quarter. Utilisation rate, including that of trainees, fell to 80.2 per cent from 81.5 per cent in June quarter and 81.8 per cent in the year-ago quarter. Attrition, both on a standalone and consolidated basis, declined sequentially to 19.9 per cent and 22.2 per cent, respectively. However, it was much higher than last years 17.2 per cent on a standalone basis and 21.4 per cent on a consolidated basis.
Guidance maintained: The companys operating margin at 23.7 per cent for the quarter was at the higher end of guidance range of 22-24 per cent for the FY19, which the company maintained post second quarter earnings. The company has also retained revenue growth forecast in the 6-8 per cent range in constant currency terms for this financial year.
On former CEO Rajiv Bansal: The company lost an arbitration case against Bansal and had been asked to pay its former chief financial officer Rajiv Bansal Rs 12.17 crore with interest, after the arbitration tribunal ruled in the favour of the former executive. The company said it has received legal advice, adding that it would comply with the award and make the necessary payments.