Infosys lowers revenue outlook despite robust growth in Q2

Newly appointed Non Executive Chairman of Infosys Nandan Nilekani addresses a press conference of Infosys. Image Source: IANS

Beating analysts` estimates and despite posting robust quarterly and yearly growth in the second quarter (Q2), global software major Infosys Ltd on Tuesday projected lower annual revenue guidance for fiscal 2017-18 in dollar and rupee terms.

Consolidated revenue for the fiscal year ending March 31, 2018 is expected to grow 6.5-7.5 % in dollar terms and 3-4 % in rupee terms as on September 30 exchange rate of $1 equals Rs 65.29, the company said in a statement here.

The company posted consolidated revenue of $10.2 billion or Rs 68,484 crore for fiscal 2016-17.

The revised outlook for FY 2018 is less than 7.1-9.1 % growth in dollar and 3-5 % in rupee projected on July 14 and 6.1-8.1 % in dollar and 2.5-4.5 % in rupee estimated in April.

US dollar was Rs 64.58 on June 30 and Rs 64.85 on March 31, 2017.

In constant currency, revenue is projected to grow 5.5-6.5 %.

"Operating margin guidance for the fiscal is unchanged at 23-25 %," the statement said.

Earlier, the company reported Rs 3,726 crore net profit for the quarter under review (Q2), registering 3.4 % yearly and 7 % quarterly growth in rupees.

In dollars, net income at $578 million is up 7.3 % yearly and 7 % quarterly.

Consolidated revenue at Rs 17,567 crore is up 1.5 % yearly and 2.9 % quarterly.

Under the International Financial Reporting Standard (IFRS), gross income at $2,728 million is up 5.4 % yearly and 2.9 % quarterly.

Operating profit at $659 million grew 2.4 % yearly and 3.4 % quarterly.

Operating margin was 24.2 % compared to 24.1 % quarter ago, while net margin improved to 21.2 % in Q2 from 20.4 % in Q1.

The blue-chip company declared in interim dividend of Rs 13 per share of Rs 5 face value as against Rs 11 per share a year ago.

Though the quarterly results were declared after the stock markets closed trading for the day, the company`s blue-chip scrip of Rs 5 face value ended at Rs 926.75 per share, which is Rs 12.90 lower than on Monday`s closing rate of Rs 930.75 and opening price of Rs 945.

The share went up to a high Rs 947.50 and hit a low of Rs 924 during the intra-day trading sessions.

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