Infosys profit jumps but shares crack as company cuts revenue guidance
Expects FY17 revenue to rise 8%-9% in constant currency terms versus 10.5%-12% earlier outlook
Infosys Ltd has beaten analyst expectations to announce a consolidated net profit of Rs 3606 crore for the second quarter ended September 30, 2016. A Bloomberg poll of 27 analysts estimated the IT major to report Rs 3,530 crore net profit in the given quarter.
The company said that its total revenue for the given quarter stood at Rs 17,310 crore as against Rs 15,640 crore in the same period of last year.
Net income of the company rose 6% on an year-on-year basis.
The company has revised its FY17 sales growth outlook in Rupee terms, at 10.9% to 11.9% as against 13.7%-15.2% and said that it sees its FY17 sales growth (In Dollar terms) to remain between 7.5% to 8.5%.
The company, in July 2016, had said that it expected to grow at 10% to 11.5% (in Dollar terms).
It also announced a Rs 11 per share interim dividend for its shareholders.
Operating margin: 24.5% in first half of the year. Expectation: 24%-25% range in second half.
Structurally challenging time for industry
Some client specific things contributed to revision of sale growth outlook
Sticking to $20 billion revenue aspiration by 2020
Expect BFSI, retail segment growth to be muted next few quarters