Infosys Q4 profit rises 10.5% to Rs 4,078 crore, meets Street estimates
Posted on 13th April 2019 |
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Infosys on Friday posted a mixed set of numbers for the March quarter as well as the entire financial year 2018-19 (FY19) but gave a muted estimate on revenue growth for the current year, apart from slashing its operating margin forecast for the second consecutive year.
Despite clocking 9 per cent revenue growth in constant currency terms for FY19 against its guided range of 6.5-8.5 per cent for the period, the country’s second-largest information technology services company guided for only 7.5-9.5 per cent revenue growth in FY20. Similarly, its operating margin forecast of 21-23 per cent was one percentage point below FY19’s guidance of 22-24 per cent. This is for a second year in a row when the Bengaluru-headquartered firm has reduced its margin forecast.
In the fourth quarter of FY18, the firm met Street estimates on the revenue and net profit fronts, while margin came below market expectations. Net profit of the company rose 10.5 per cent to Rs 4,078 crore year-on-year, while it grew 12.9 per cent sequentially. However, for the whole year, net profit declined by around 4 per cent to Rs 15,410 crore owing to increased operating expenses, apart from the reduction in value of assets held for sale.
The IT firm, whose earnings announcement coincided for the first time with that of TCS, posted a 19.1 per cent jump in revenue at Rs 21,539 crore for the fourth quarter. While revenue growth in constant currency terms was around 0.6 per cent on a sequential basis, it was 2.4 per cent in dollar terms. For the whole year, Infosys reported 17.2 per cent y-o-y growth in revenue at Rs 82,675 crore. Revenues grew 9 per cent in constant currency terms, while in dollar terms, growth was 7.9 per cent.
“We have completed the first year of our full transformation journey with strong results, including revenue growth, performance of digital portfolio and large deal wins,” said Salil Parekh, CEO, Infosys. “We had a guidance this year of 6-8 per cent and we have delivered 9 per cent revenue growth. So, a guidance of 7.5-9.5 per cent is very well within the range of growth we anticipate this year.”
While the firm showed good momentum in revenue growth by signing large deals worth $6.28 billion for the whole fiscal, operating margin took a big hit in the fourth quarter. Q4 margins came at 21.5 per cent, which was well below the company’s guided range of 22-24 per cent. For FY19, margins stood at 22.8 per cent, which was at the lower end of its guided range.
Among verticals, Infosys witnessed negative sequential growth in financial services, retail and life sciences during the fourth quarter. However, it posted strong growth of 16.8 per cent in communication and hi-tech verticals. “If you look at banking alone, we had a positive growth rate. But, negative growth was in the insurance sector, which brought the entire growth down. Also, on a YoY basis, financial services did well. Infosys’ ADRs (American Depositary Receipts) were trading 2.69 per cent lower at $10.67 at Nasdaq at the time of going to press.
Even out of the 13 large deals, which we had this quarter, three were from financial services,” Parekh said.
During the last fiscal year, attrition continued to remain a matter of concern for the company. For the quarter ended March 2019, overall attrition remained at 20.4 per cent, a rise of 50 basis points over the preceding quarter.
“Overall attrition remains high and we are continuing our focus on arresting the same,” said Pravin Rao, chief operating officer, Infosys. The total headcount by the end of the March quarter stood at 228,123, an addition of 2,622 employees over the previous quarter. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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