<p>In line with market expectations, Bengaluru-based IT giant Infosys has clocked net profit of Rs 4,037 crore for the quarter ended September 30, 2019, down 1.8% as compared with Rs 4,110 crore for the corresponding quarter last year, owing to the increase in employee benefit cost.</p>.<p>The company had clocked the net profit of Rs 3,802 crore for the first quarter ended June 30, 2019.</p>.<p>On the other hand, the company's revenues jumped by healthy 9.8%, to Rs 22,629 crore, from Rs 20,609 in the corresponding quarter last year.</p>.<p>The company witnessed its employee benefit cost jump by 13.6% to $1.6 billion, in a bid to reduce the attrition level in the company. The cost of sub-contractors also jumped by 8.3% to $234 million.</p>.<p>The attrition level in the company came down from a peak of 23.4% to 21.7% during the quarter.</p>.<p>The company also increased the lower end of its revenue guidance to 9%-10%, from 8.5%-10% earlier. The company maintained its upper end of guidance.</p>.<p>The digital business grew by healthy 38.4% and contributed $1.23 billion to the company’s revenues. On the other hand, the company’s core business declined by 0.7% during the quarter, contributing $1.98 billion to the company’s revenues.</p>.<p>The company signed new deals worth $2.8 billion, up from $2.7 billion in the last quarter – taking the total in the first half of the year to $5.5 billion, a jump of 75% on a year-on-year basis. There were 13 large deal wins for the company during the quarter – with four each in financial services and the retail vertical. The US, which contributes highest to the company’s revenue, gave the company six large deal wins in the quarter.</p>.<p>Owing to increased dependence on the digital business, the company also witnessed improvement in its margins. The operating margins of the company improved on a sequential basis by 120 bps to 21.7% -- still at the lower end of the margin guidance of 21%-23%.</p>.<p>Speaking about the increase in the margins, Parekh said, “Six of our seven large segments are all showing double-digit growth. We had good growth in financial services in the second quarter and are seeing good demand."</p>.<p>He did, however, state that the escalating trade war between China and the US, alongside some impact of Brexit might hamper growth in the European business.</p>.<p>The company, which was once bellwether when it comes to the margins, attributed the phenomenon to the increase in the investments that company has been making of late.</p>.<p>While the banking, financial services and insurance (BFSI) – the biggest contributor to the company’s revenues – jumped by 10.3%, despite some softness in the European banks.</p>.<p>However, the consumption slowdown has hit the company’s growth in the retail vertical – which saw a decline of 0.6% in the reported currency. Company’s COO UB Pravin Rao, said that it has got more to do with the macros, as retail is most sensitive to the economic conditions.</p>.<p>The fastest-growing verticals for the company include – communication and energy, utilities, resources & services – both of which grew in excess of 17% in reported currency.</p>.<p>The gross profit of the company increased to Rs 7,550 crore, as against Rs 7,328 crore in the corresponding quarter last year.</p>.<p>During the day's trade, the company's scrips went up by Rs 32.8 per share at BSE, to close at Rs 815.70 per share.</p>
<p>In line with market expectations, Bengaluru-based IT giant Infosys has clocked net profit of Rs 4,037 crore for the quarter ended September 30, 2019, down 1.8% as compared with Rs 4,110 crore for the corresponding quarter last year, owing to the increase in employee benefit cost.</p>.<p>The company had clocked the net profit of Rs 3,802 crore for the first quarter ended June 30, 2019.</p>.<p>On the other hand, the company's revenues jumped by healthy 9.8%, to Rs 22,629 crore, from Rs 20,609 in the corresponding quarter last year.</p>.<p>The company witnessed its employee benefit cost jump by 13.6% to $1.6 billion, in a bid to reduce the attrition level in the company. The cost of sub-contractors also jumped by 8.3% to $234 million.</p>.<p>The attrition level in the company came down from a peak of 23.4% to 21.7% during the quarter.</p>.<p>The company also increased the lower end of its revenue guidance to 9%-10%, from 8.5%-10% earlier. The company maintained its upper end of guidance.</p>.<p>The digital business grew by healthy 38.4% and contributed $1.23 billion to the company’s revenues. On the other hand, the company’s core business declined by 0.7% during the quarter, contributing $1.98 billion to the company’s revenues.</p>.<p>The company signed new deals worth $2.8 billion, up from $2.7 billion in the last quarter – taking the total in the first half of the year to $5.5 billion, a jump of 75% on a year-on-year basis. There were 13 large deal wins for the company during the quarter – with four each in financial services and the retail vertical. The US, which contributes highest to the company’s revenue, gave the company six large deal wins in the quarter.</p>.<p>Owing to increased dependence on the digital business, the company also witnessed improvement in its margins. The operating margins of the company improved on a sequential basis by 120 bps to 21.7% -- still at the lower end of the margin guidance of 21%-23%.</p>.<p>Speaking about the increase in the margins, Parekh said, “Six of our seven large segments are all showing double-digit growth. We had good growth in financial services in the second quarter and are seeing good demand."</p>.<p>He did, however, state that the escalating trade war between China and the US, alongside some impact of Brexit might hamper growth in the European business.</p>.<p>The company, which was once bellwether when it comes to the margins, attributed the phenomenon to the increase in the investments that company has been making of late.</p>.<p>While the banking, financial services and insurance (BFSI) – the biggest contributor to the company’s revenues – jumped by 10.3%, despite some softness in the European banks.</p>.<p>However, the consumption slowdown has hit the company’s growth in the retail vertical – which saw a decline of 0.6% in the reported currency. Company’s COO UB Pravin Rao, said that it has got more to do with the macros, as retail is most sensitive to the economic conditions.</p>.<p>The fastest-growing verticals for the company include – communication and energy, utilities, resources & services – both of which grew in excess of 17% in reported currency.</p>.<p>The gross profit of the company increased to Rs 7,550 crore, as against Rs 7,328 crore in the corresponding quarter last year.</p>.<p>During the day's trade, the company's scrips went up by Rs 32.8 per share at BSE, to close at Rs 815.70 per share.</p>