The IT giant Infosys reported a single-digit 3.2 percent increase in consolidated net profit for the quarter ending June 30, 2022 (Q1FY23), from 5,195 crores to 5,360 crores, falling short of analysts’ expectations as growing costs overshadowed the quarter’s deal wins. PAT for the first quarter fell by 5.7 percent from the previous quarter’s $5,686 crore.
Consolidated revenue, on the other hand, climbed by 6.8% from 32,276 crores in Q4FY22 and by 23.6 percent from 27,896 crores in Q1 of the previous year to 34,470 crores in the quarter under review. Refinitiv data shows that analysts had projected a profit of 56.26 billion rupees. The IT company increased its FY23 full-year sales projection from 13 to 16 percent. With year-over-year growth of 21.4 percent and a sequential increase of 5.5 percent in constant currency, Infosys produced a strong performance in the first quarter. All business segments experienced a double-digit year-over-year increase in constant currency terms. Revenues from digital sources made up 61.0 percent of total revenues and increased by 37.5 percent in constant currency. At 21,171, net hiring was significant.
The operating margin for the quarter was 20.1 percent, while 95.2 percent of net profit was converted to free cash flow. In the meantime, the business reported a consolidated operating profit of 6,914 crores, which was sequentially down from 6,956 crores in Q4FY22 but up 4.7% from 6,603 crores in Q1FY22. Compared to 23.7 percent in Q1FY22 and 21.5 percent in Q4FY22, the operating margin decreased to 20.1 percent in Q1FY23. Aditi Patil, a research associate at Prabhudas Lilladher, stated that although Infosys missed margins, it outperformed revenue expectations thanks to an upgrade to the outlook. She stated that on the top-line front, “Manufacturing posted the highest growth rate of 6.5% QoQ USD, followed by retail (5.3%), energy & utilities (7.3%), and communications (5.5%). Life Sciences saw a USD QoQ growth of 2.3 percent. Market growth was driven by America, which increased by 4.5 percent QoQ USD, and Europe, which increased by 3 percent QoQ USD.
RoW increased 7.9 p and India’s QoQ USD drop was 15.6% “percent QoQ in USD. On Friday of last week, Infosys shares were trading at 1506.30, down 26.55 or 1.73 percent. Its market value is approximately Rs. 6,33,793.91 crore. Following its earnings, trade this week will centre on Infosys shares.
Follow and connect with us on Facebook, LinkedIn & Twitter
