Infosys Q1FY23 Results: IT major Infosys on Sunday reported a consolidated net profit of Rs 5,360 crore for the June 2022 quarter, a growth of 3.2 per cent as compared with Rs 5,195 crore in the year-ago quarter. The company’s revenue jumped 23.6 per cent to Rs 34,470 crore, against Rs 27,896 crore in the June 2021 quarter. Sequentially, Infosys’ net profit declined 5.7 per cent as compared with Rs 5,686 crore in the March 2022 quarter.
On a quarter-on-quarter basis, its revenue rose 6.8 per cent during April-June 2022 as against Rs 32,276 crore in the preceding quarter, according to a BSE filing.
For the current financial year 2022-23, Infosys has set a revenue growth target of 14-16 per cent in constant currency, higher as compared with the 13-15 per cent targeted earlier. While the operating margin is expected to grow 21-23 per cent in FY23.
The Bengaluru-based IT company’s total operating expenses during April-June 2022 increased 14.4 per cent year-on-year to Rs 3,187 crore, compared with Rs 2,787 crore a year ago, according to the filing. Its operating profit witnessed a 4.7 per cent growth to Rs 6,914 crore in the June 2022 quarter, compared with Rs 6,603 crore a year ago.
However, its operating margin 3.6 percentage points to 20.1 per cent in Q1FY23, against 23.7 per cent in the June 2021 quarter.
Infosys CEO and MD Salil Parekh in a statement said, “Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organisation, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition.”
He added that the company is investing in rapid talent expansion while ensuring rewarding careers for its employees, to better serve evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY23 revenue guidance to 14-16 per cent.
The company in the statement said the yearly growth was in double-digits across all business segments in constant currency terms. Its revenue from digital services accounted for 61 per cent of the overall earnings, a growth of 37.5 per cent in constant currency.
Its Chief Financial Officer Nilanjan Roy said, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations.”
He added that the continued high focus on cash led to strong FCF (free cash flow) to net profit conversion at 95.2 per cent and improvement in ROE (return on equity) to 31 per cent.
The total contract value of large deal wins stood at $1.7 billion during the June 2022 quarter, which is lower than $2.3 billion during the previous quarter.
The company’s total employee count as of June 30, 2022, stood at 3,35,186, adding 21,171 employees during the first quarter of 2022-23. Its attrition for IT services during the June 2022 quarter rose to 28.4 per cent on the last 12 months basis, against 27.7 per cent, according to the BSE filing.
Shares of Infosys on Friday fell Rs 26.55, or 1.73 per cent, to close at Rs 1,506.30 apiece on the BSE.
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