Infosys Q1 net grows 5.2 pc to Rs 3,802 cr; ups revenue guidance to 8.5-10%

IT behemoth Infosys Ltd Friday posted better-than-expected 5.3 per cent rise in its June quarter net profit as it bagged more orders, and raised revenue growth forecast for the current fiscal to 8.5-10 per cent range.The country’s No 2 IT services firm posted a net profit of Rs 3,802 crore, or Rs 8.83 per share, in April-June as compared to Rs 3,612 crore, or Rs 8.31 a share, in the same period of the previous fiscal, the company said.Notably, Infosys has announced an enhanced capital allocation policy wherein it will return 85 per cent of free cash flow cumulatively over a five-year period to shareholders via buyback and dividends.Revenue from operations rose 14 per cent to Rs 21,803 crore. The Bengaluru-based company secured USD 2.7 billion – its highest ever in a quarter – in large deals, mostly in dominant North American and European markets.The company has raised its revenue growth guidance for the fiscal to March 31, 2020 to be between 8.5 per cent and 10 per cent, from the 7.5 per cent to 9.5 per cent range it had forecast earlier.Ahead of the announcement of results, Infosys shares closed 0.87 per cent higher at Rs 727.10 on the BSE on Friday.Commenting on the results, Infosys CEO and Managing Director Salil Parekh said, “We had a strong start to FY’20 with constant currency growth accelerating to 12.4 per cent on year over year basis and digital revenue growth of 41.9 per cent. This was achieved through our consistent client focus and investments which have strengthened our client relationships”.Attributing the performance to a “broad-based growth”, Parekh added that the company has consequently raised the revenue guidance for this fiscal from 7.5-9.5 per cent to 8.5-10 per cent in constant currency terms. In US dollars terms, Infosys net profit grew to USD 546 million in the June quarter from USD 534 million in the year-ago period, while revenues rose to USD 3.13 billion as against USD 2.83 billion. “We had a good quarter as we continue to leverage our digital navigation framework to help our clients build and nurture their live enterprise. Large deal TCV was highest ever at USD 2.7 billion.