Infosys Facing Lows in Profit; Retains FY18 Constant Currency Revenue Growth

It was a good start to the year by Infosys as its first quarter earnings beat analysts’ expectations on all counts on Thursday, with the company retaining its full year constant currency revenue growth guidance.

Profit during the quarter fell 3.3 percent sequentially to Rs3,483 crore and revenue declined 0.2 percent to Rs17,078 crore.

Dollar revenue growth was 3.2 percent at USD 2,651 million against expectations of 2.6 percent increase and constant currency revenue growth came in at 2.7 percent against estimates of 2 percent.

“Our persistent focus on execution in Q1 is reflected in broad-based performance on multiple fronts revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results,” Vishal Sikka, CEO & MD said.

The IT bellwether has maintained its constant currency revenue growth guidance at 6.5-8.5 percent (which was 8.3 percent in FY17 and 13.3 percent in FY16) and also retained operating margin guidance at 23-25 percent for the current financial year.

It raised its FY18 dollar revenue growth guidance to 7.1-9.1 percent from 6.1-8.1 percent earlier.

Operating cash flow was USD 644 million at the end of March 2017, which increased significantly by 17.7 percent compared with USD 547 million in Q4FY17.

Infosys said liquid assets including cash and cash equivalents and investments rose 1.9 percent to USD 6,091 million in June 2017 from USD 5,979 million in March 2017.

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