Infosys Q2 net up 3.33% at Rs 3,726 cr

Announces dividend of Rs 13 per share

Beating the market expectations, Infosys, India’s second largest IT services company, on Tuesday, reported a net profit of Rs 3,726 crore for the quarter ended September 30, 2017, up 3.33% compared with Rs 3,606 crore for the corresponding quarter last year.

The company had clocked a net profit of Rs 3,483 crore for the first quarter ended June 30, 2017.

The gross profit of the company stood at Rs 6,340 crore, down 0.1% from Rs 6,348 crore in the corresponding quarter last fiscal.

The revenues of the company jumped by 1.48% to Rs 17,567 crore, compared with Rs 17,310 crore in the corresponding quarter last year.

Infosys declared an interim dividend of Rs 13 per share, compared to an interim dividend of Rs 11 per share in the last fiscal.

On the geographical front, North America (60.6%) has been the biggest contributor to the company’s revenues in the quarter, followed by Europe (23.2%), and India (3.3%).

Banking and Financial Services, Insurance (BFSI) was the largest contributor to the revenues with a contribution of 33.4%, followed by Retail and Life Sciences (22.6%), Manufacturing and Hi-Tech (22.0%), and Energy, Utilities, Communications and Services (22.0%), during the quarter.

“We continue to focus on executing on the theme of software enabled services and on accelerating growth of our new services portfolio,” U B Pravin Rao, interim CEO and MD, Infosys told reporters.

The company has also added nine new clients during the quarter taking the number in the segment to 1,173, against 1,164 in the previous quarter.

The company has cut its revenue guidance to 5.5%-6.5% from 6.5%-8.5% in constant currency. Experts suggest that companies, including Infosys, are seeing stress on their bottomline owing to the increase in the on-site hiring.

Gloomy future
The company has already started with the process of shareholder consultation. “We have already started with the process of shareholder consultations and it will be streamlined by January,” Nandan Nilekani, Chairman of the company said.

The Bengaluru-based IT major has reduced its headcount for the quarter by 0.06%. The company that employed 1,98,553 people in the beginning of the quarter, now employs 1,98,440, about 113 less. During the first quarter, it had reduced its headcount by 0.9% (1,811 people), from 2,00,364 at the beginning of the year to 1,98,553 employees on June 30, 2017.

Company’s CFO M D Ranganath justified the decrease in the headcount by pointing at the increase in the efficiency per employee.

The company’s shares ended 1.37% lower at Rs 926.75 per share on the BSE on Tuesday.