Infosys Q1 results LIVE: PAT at Rs 36.12 bn, maintains revenue guidance

Information technology (IT) major Infosys announced its results for the first quarter of financial year 2019 after market hours on Friday.

Profit after tax (PAT) was reported at Rs 36.12 billion vs Rs 36.90 billion QoQ.  Revenue at Rs 192.18 bn vs Rs 180.83 bn (QoQ). The company has maintained FY19 constant currency growth maintained AT 6-8%

The Q1 earnings are being seen as an acid test for the company's new management. 

Analysts, reportedly, are keenly watching the performance of Infosys' key business verticals -- including banking, financial services & insurance (BFSI) and retail -- and its digital business. 

The outlook for verticals like BFSI and retail, commentary around margins in lieu of the new investments, deal wins, the performance of the digital segment, and operational performance with increase in onsite investments are key monitorables to look out for, analysts said.  

 

Check Live Updates:

04:57
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Infosys' bonus history

Year Ratio Book Value (Unit Curr) EPS (Unit Curr)
2015 1:01 418.69 105.96
2014 1:01 735.87 178.22
2006 1:01 249.89 87.72
2004 3:01 488.21 186.60
1999 1:01 173.70 40.19
1997 1:01 155.43 50.94
1994 1:01 81.26 24.15

Source: ACE Equity

04:57
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Infosys Q1

Salil Parekh: With our Agile Digital business growing sequentially at 8% in constant currency and increase in our large deal wins to over $1 billion, we see good traction in the market.
 
04:56
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Infosys Q1

Infy management:
Deal pipeline very healthy. have a large number of deals in the pipeline
04:53
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Infosys Q1

Infy management:
Don't think we need to make any adjustments on guidance
04:48
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Infosys management on Panaya

Took $39 million write down on Panaya value
04:46
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Infosys Q1

Infy management:
Should be able to bring down attrition to manageable levels in the next 2-3 quarters
04:45
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Infosys Q1

Infy management:
Identified specific initiative to bring down attrition
04:42
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Infosys Q1

Infy management:
Outlook on BFSI verticle positive based on strong demand
04:41
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Infosys Q1

Infy management:
See good demand in US, Europe
04:39
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Infosys Q1

Infy management:
Financial services business in-demand today, 40% of large deal wins from financial service sector 
04:39
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Infosys Q1

Infy management: 
See strong traction in the banking and insurance space 
04:38
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Infosys Q1

Basic EPS at Rs 16.62 for the quarter ended June 30, 2018, including impact of Rs 1.24 on account of reduction in the fair value of Assets held for sale YoY growth of 9.1%; QoQ decline of 2.1%
04:37
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Infosys Q1

FY 19 revenue guidance in constant currency retained at 6%-8%; FY 19 operating margin guidance retained at 22%-24%
04:36
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Infosys Q1

Salil Parekh:
EBIT margin in Q1 near upper-end of range given
04:36
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Infosys Q1

RoE increases to 25.5% as compared to 24.1% last quarter; EPS grew by 9.1% on a year-on-year basis
04:35
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Infosys: Utilisation (excluding trainees) at all-time high of 85.7%
04:34
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Infosys Q1

Salil Parekh: Believe we have a stable start to the year
04:34
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Infosys Q1

Salil Parekh:
Have seen broad-based strong performance on multiple fronts
04:32
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COMMENT M.D. Ranganath, CFO, Infosys on Q1FY19 results

We had broad-based financial performance on multiple fronts - RoE crossed 25%, Free cash flow was up 32% quarter on quarter and operating margins were at the upper quartile of our margin guidance. While we continue to make strategic investments to leverage the opportunities in Digital, our relentless focus on operational efficiencies continued in this quarter.
04:29
pm
Segment-wise revenue (Image source: Company statement; in Rs crore)




04:28
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Infosys: Standalone attrition rate at 20.6% vs 16.6% (QoQ)
 
04:28
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Infosys: Consolidated attrition rate at 23% vs 19.5% (QoQ)
04:28
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Infosys: India revenue down 7.8% (QoQ) & down 4.1% in constant currency
04:28
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Infosys: North America revenue growth at 19% (QoQ) and 2% in constant currenct terms
04:25
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Addition to the Board
 
The Board appointed Michael Gibbs as an Independent Director of the Company effective July 13, 2018 for a period of three years, based on the recommendation of the Nomination and Remuneration Committee of the Board
04:24
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Bonus issue of equity shares
 
The Board in its meeting held on July 13, 2018 has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined. Consequently, the ratio of equity shares underlying the ADSs held by an American Depositary Receipt holder would remain unchanged.

The Board approved and recommended the issue of bonus shares to celebrate the 25th year of Company’s public listing in India and to further increase the liquidity of its shares. The bonus issue of equity shares and ADSs will be subject to approval by the shareholders, and any other applicable statutory and regulatory approvals.
04:23
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COMMENT Salil Parekh, CEO and MD, Infosys on Q1FY19 results

The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients. With our Agile Digital business growing sequentially at 8% in constant currency and increase in our large deal wins to over US$ 1 billion, we see good traction in the market

04:23
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Infosys: Seen increase in large deal wins to over $1 bn
04:21
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Infosys: Retain FY19 operating margin aim at 22-24%
04:19
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Infosys: Q1 digital revenue at $803 mn, 28.4% of total revenue
04:19
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Infosys: $100 m clients increased sequentially by four to 24
04:18
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Infosys: Reduced fair value of Panaya asset which impacted Q1 earnings. Panaya asset value change reduced Q1 net by Rs 2.70 bn
04:17
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Infosys says board appoints Michael Gibbs as an Independent Director
04:15
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Infosys Q1

Dollar revenue up 0.9% (QoQ) at $2831 mn, up 2.3% in constant currency terms
04:14
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Infosys Q1: Digital revenue up 8% (QoQ)
04:11
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Infosys Q1

EBIT at Rs 42.67 bn
04:09
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Infosys Q1

Revenue at Rs 192.18 bn vs Rs 180.83 cr (QoQ)
04:07
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Infosys Q1

FY19 CONSTANT CURRENCY GROWTH MAINTAINED AT 6-8%
04:03
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Infosys Q1

Infosys board approves one bonus share for every share held
04:01
pm
Infosys reports Q1 earnings: Net profit at Rs 36.12 billion
03:54
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MOTILAL OSWAL RESEARCH on Infosys
 
Profit after tax (PAT) is expected to come in at Rs 37.8 billion, up 2.6 per cent on a quarter-on-quarter basis (QoQ). Given the support of recent INR depreciation, we expect full-year EBIT margin at 24.3 per cent, slightly above its guidance of 22-24 per cent. EBITDA margin is expected to contract 100 bps QoQ to 26.3 per cent, led by wage hikes and increased investments, partially offset by rupee depreciation.
 
Compared to the weak exit for FY18 (0.6 per cent QoQ CC), we expect acceleration in growth, led by seasonal strength, resulting in 2.3 per cent QoQ constant currency (CC) growth in 1QFY19. Cross-currency headwinds are expected to result in 1.1 per cent QoQ growth in dollar terms.
03:45
pm
IT Sector Preview: Cross currency to affect reported dollar revenue
 
The top-5 IT firms are likely to post -2% to +2% QoQ dollar revenue growth, with TCS likely to lead the pack. Mid-sized firms will see variation, with Hexaware Technologies and Persistent Systems (3.7% and 3.6% QoQ dollar revenue growth, respectively). However, Cyient (0.3% QoQ) will underperform owing to seasonally weak DLM revenue. In rupee terms, revenue growth is likely to come in at 1.8-6% QoQ owing to rupee depreciation of 4.2% QoQ. READ MORE
03:40
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Infosys gains 2% ahead of June-quarter results


03:35
pm
Nandan Nilekani may have a longer stint at Infosys; Q1 earnings on Friday
 
Infosys non-executive chairman Nandan Nilekani is going to helm its board of directors for a longer period than expected, according to multiple sources in the know.
 
Nilekani, who co-founded Infosys along with six others, returned to the technology services company after eight years to chair the board in August when the Bengaluru-headquartered firm was in desperate need of bringing back stability after the exits of Vishal Sikka, the then chief executive officer (CEO), and chairman R Seshasayee. READ MORE


03:34
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BROKERAGE VIEW Edelweiss on Infosys

Revenues expected to grow 3.2% QoQ in cc terms, impacted 90bps due to cross currency headwinds (USD growth 2.3% QoQ). EBITDA margin expected to decline 50bps QoQ as operational efficiencies and INR depreciation benefits will be offset by wage hikes, higher visa costs, investment in digital. Commentary on demand environment, strategy for digital, client spendings and deal wins will be key monitorables
03:32
pm
HDFC Securities on Infosys

FY19 growth outlook, we expect revenue guidance of 6 to 8% in constant currency (CC) to be unchanged; Performance of digital, top accounts and large deal TCV ($ 907mn 10 deals in 4Q); Performance and outlook of BFSI (33% of rev) and Retail & CPG (13.3% of rev and soft commentary earlier) verticals; Progress on increased investment outlay towards onsite hiring, investments in digital/IPs, S&M; EBIT margin guidance (currently at 22 to 24%) with expectation of upside risk (+50bps)
03:30
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FUND TRACKER SBI Life adds Infosys in its portfolio in June 2018

SBI MF's major additions were Infosys(Rs 3.05bn),Indostar Capital Finance(Rs 2.8bn) and Exide Industries(Rs 2.21bn).It's major reductions were Interglobe Aviation(Rs 1.37bn), Dr. Lal Pathlabs(Rs 1.01bn) and Container Corporation Of India (Rs 0.97bn). New entrants included Indostar Capital and Minda Corp. Complete exits were Mahindra Holidays and Repco Home

(Source: Edelweiss Fund Insight)
03:25
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SPECIAL REPORT 25 years of Infosys listing: Ex-CFO says Narayana Murthy made it all happen

As IT major Infosys completed 25 years of its listing on the stock exchange, a former senior official of the firm paid rich tributes to the co-founder N R Narayana Murthy for creating the "dream" company.
 
"I don't think the country is going to see one more Infosys again because Infosys has been a dream company for many generations," says ex-Chief Financial Officer V Balakrishnan READ MORE HERE
03:15
pm
Stock watch BSE IT index ahead of Infosys' Q1 numbers

COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR)
WEIGHT IN
INDEX (%)
R S SOFTWARE (I) 46.10 7.65 19.90 73.46 0.04
SONATA SOFTWARE 341.40 25.15 7.95 2442.24 0.25
MPHASIS 1220.30 50.70 4.33 9435.85 0.80
CIGNITI TECH. 396.00 10.95 2.84 507.18 0.11
INFOSYS 1323.45 28.85 2.23 251479.92 42.26
FIRSTSOUR.SOLU. 73.95 1.10 1.51 2240.24 0.24

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03:10
pm
Infosys Q1FY19 earnings preview: Here's what to expect today
 
TCS surprised the Street by reporting better-than-expected numbers in the first quarter of financial year 2018-19 (Q1FY19), while showing a double-digit rise in dollar revenue for the second quarter. Will Infosys follow suit? The IT major is scheduled to announce its results for the June quarter post market hours today.
 
According to analysts, outlook for verticals like BFS and retail, commentary around margins in lieu of the new investments, deal wins and performance of digital segment and operational performance with increase in onsite investments are key monitorables to look out for with Infosys. READ MORE
03:02
pm
Previous Quarter Results Infosys Q4 net rises 2.4% to Rs 36.9 bn
 
Infosys, India's second-biggest software services exporter, posted a 2.4% rise in its fourth-quarter net profit, roughly in line with analysts' estimates.
 
Net profit rose to Rs 36.90 billion in the three months ended March 31, from Rs 36.03 billion in the same period a year earlier, the company said on Friday. In quarterly terms, the company posted 28% decline in net profit when compared to Rs 51.29 billion posted in December quarter. READ MORE


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