Infosys net profit up by 20 per cent, to roll out salary hikes, promotions across all levels
14 October, 2020 | Rakshanda Afrin
Infosys on Wednesday posted 20.5 per cent year-on-year growth in its net profit during the quarter ended September. Chief Operating Officer Pravin Rao said they are rolling out salary increases and...
Bluechip digital transformation major Infosys on Wednesday posted 20.5 per cent year-on-year growth in its net profit during the quarter ended September at Rs 4,845 crore and revised full year revenue guidance given the highest ever deal wins. The revenues totalled Rs 24,570 crore, marking a growth of 8.6 per cent y-o-y and 3.8 per cent q-o-q. Operating profit was Rs 6,228 crore, up 26.8 per cent y-o-y and 16.1 per cent q-o-q.
Basic earnings per share was Rs 11.42, showing a growth of 20.8 per cent y-o-y and 14.4 per cent q-o-q. “The second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys,” said CEO and Managing Director Salil Parekh.
“Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2 per cent y-o-y overall revenue growth and 25.4 per cent growth from digital offerings, which now are at 47.3 per cent of revenues,” he said. The company signed 3.15 billion dollars worth of deals, the highest ever, during the July to September quarter against 1.74 billion dollars in the quarter ended June.
Infosys has revised its revenue growth guidance upward to 2 to 3 per cent in constant currency for financial year 2020-21 from 0 to 2 per cent earlier. The full year operating margin guidance also revised upward to 23 to 24 per cent against 21 to 23 per cent earlier.
“The strength and resilience of Infosys was fully visible in Q2 with operating metrics witnessing a healthy increase, broad-based growth, highest ever large deal TCV at 3.15 billion dollars and attrition reducing to single digits,” said Chief Operating Officer Pravin Rao.
“Employees have been critical part of our success. As a recognition of their stellar performance, we are giving 100 per cent variable pay along with a special incentive for Q2. Additionally, we are rolling out salary increases and promotions across all levels effective January 1.”
Chief Financial Officer Nilanjan Roy said relentless efforts on cost optimisation and strengthening operational efficiencies helped by certain cost deferrals led to 270 basis points sequential improvement in operating margin to 25.4 per cent and a 300 basis points in H1 margins.