Infosys Q2 results: Consolidated PAT rises 4.3% QoQ, beats estimate; co to pay Rs 15 dividend

MUMBAI: today reported a 4.3 per cent sequential rise in its consolidated net profit to Rs 5,421 crore for the quarter ended September, which was above analysts’ expectations.

The company reported a 6.1 per cent quarter-on-quarter growth in consolidated revenues to Rs 29,602 crore for the reported quarter, which also managed to beat Street’s estimate.

The company’s board also approved an interim dividend of Rs 15 per share at their meeting today.

“Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings,” said Salil Parekh, chief executive officer at Infosys in a press statement.

Parekh said that the continued momentum in the business has given Infosys the confidence to raise its guidance for growth in revenues in 2021-22 to 16.5-17.5 per cent from 14-16 per cent earlier. The increase in guidance by the company is larger than what was expected by analysts.

Infosys, however, retained its consolidated operating margin guidance for 2021-22 to 22-24 per cent.

Infosys’ confidence stems from the fact that the company managed to record 6.3 per cent growth in topline in constant currency terms aided by a 42.4 per cent year-on-year growth in digital services revenue in the quarter.

The company also registered deal wins worth $2.15 billion in the reported quarter as it continued to see strong client spending on digital transformation.

On the operating front, the company saw a 10 basis points sequential decline in consolidated operating margin to 23.6 per cent, which was still within the company’s guided band.

The decline in margin was largely led by wage hikes undertaken to retain talent at the company but those efforts were largely fruitless as the attrition rate spiked to 20.1 per cent from 13.9 per cent in the previous quarter.

“Our operating margins for Q2 were resilient; the impact of enhanced employee value proposition initiatives was offset by strong operating parameters, cost optimization and operating leverage,” said Nilanjan Roy, chief financial officer at Infosys.

Shares of the company ended 1.2 per cent higher at Rs. 1,705 on the National Stock Exchang.

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