Infosys Ltd's Q1FY19 consolidated net profit (adj.) rises 0.9% qoq to Rs3,809cr : Beats Estimates

The company’s consolidated revenue stood at Rs19,128cr, up 5.9% qoq and 12% yoy.

Jul 13, 2018 12:07 IST India Infoline Research Team

Infosys Ltd Q1FY19

Consolidated Results Q1FY19: (Rs in cr)

Q1FY19 QoQ (%)
Revenue 19,128 5.8
EBITDA 4,537 1.5
EBITDA Margin (%) 23.7 [101]
Net Profit (adjusted) 3,809 0.9
***EBITDA margin change is bps
Infosys reported in-line set of numbers for Q1FY19 on revenue and EBIT fronts. Constant currency (cc) revenue grew by 2.3% qoq and US revenue came in at USD2,831mn, up 0.9% sequentially. INR revenue grew by 5.8% qoq to Rs19,128cr which is in-line with consensus estimate of Rs19,097cr. EBIT stood at Rs4,537cr, up 1.5% qoq against consensus estimate of Rs4,540cr, EBIT margin contracted by 101bp qoq to 23.7%. PAT declined by 2.1% qoq to Rs3,612cr below consensus estimate of Rs3,727cr. There were exceptional items in Q4FY18 and Q1FY19 pertaining to reduction in the fair value of Disposal Group held for sale of Rs118cr and Rs270cr respectively. Adjusting for the same, the PAT grew by 0.9% qoq to Rs3,809cr, which is higher than the street estimates.

  • Revenue growth was driven by Retail, and smaller verticals like Energy, Utilities, Resources & Services and manufacturing.
  • Retail grew by 6.4% qoq cc while Energy, Utilities, Resources & Services and Manufacturing grew by 5.3% qoq cc and 2.5% qoq cc.
  • Financial services disappointed with 0.2% qoq cc decline while Communication grew by 1.3% qoq cc.
  • Amongst geographies, North America and Europe grew by 2.0% qoq cc and 2.1% qoq cc, driving bulk of the growth. RoW grew by 5.3% qoq cc.
  • Digital Revenues increased by 8.0% qoq to USD803mn, comprising of 28.4% of revenue
  • The company retained FY19 revenue guidance in constant currency at 6%-8% which is in line with street estimates
  • FY19 operating margin guidance has been retained at 22%-24%, which might be perceived as slightly negative considering tailwinds from INR depreciation
  • The company has announced 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares
  • Large deal wins crossed $1 billion, of which over 40% was from Financial Services
  • $100 mn clients increased sequentially by 4 to 24
  • Utilization (excluding trainees) at all-time high of 85.7%, up from 84.7% in Q4FY18

Technical View:

Infosys Ltd ended at Rs. 1,309.10, up by 14.5 points or 1.12% from its previous closing of Rs. 1,294.60 on the BSE.
The scrip opened at Rs. 1,310 and touched a high and low of Rs. 1,331.35 and Rs. 1,300.15 respectively. A total of 1,08,53,800 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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