Infosys reported an 11 per cent rise in consolidated net profit in June quarter at Rs 5,945 crore, but lowered its full-year growth outlook to 1-3.5 per cent amid macro uncertainties.
The net profit (before minority interest) during the same period the previous year stood at Rs 5,362 crore.
India’s second largest software services exporter Infosys posted revenue growth of 10 per cent to Rs 37,933 crore, up from Rs 34,470 crore in the year-ago period. The company has lowered its revenue guidance for the full year to 1 to 3.5 per cent in constant currency, down from 4 to 7 per cent projected earlier.
"In the short-term, we are seeing some clients slowing or stopping discretionary work," said MD & CEO Salil Parekh. Among the sectors impacted, Parekh alluded to Hi-Tech, telecom, and parts of retail. Together, these three segments contributed to 34.3 percent of Infosys' overall topline in the June quarter.
Infosys’ earnings remained muted on a sequential basis in the June quarter, given a significant slowdown in business amid global macroeconomic headwinds.
The company informed that the consolidated sales grew a mere 1.3 per cent sequentially, while the net profit dipped about 3 per cent. In constant currency terms, the revenue saw a rise of 1 per cent quarter-on-quarter (QoQ). The consolidated operating margin came in at 20.8 per cent, down 20 basis points sequentially.
“Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimization. Company’s rigorous operational discipline, including improved productivity measures and higher utilization, helped margins for the quarter,” said Nilanjan Roy, CFO at Infosys.
