Infosys Ltd's Q1FY20 consolidated net profit declines 6.8% qoq to Rs3,798cr: Beats Estimates

The company’s consolidated revenue stood at Rs21,803cr, up 1.2% qoq and 14.0% yoy.

Jul 12, 2019 11:07 IST India Infoline Research Team

Infosys Ltd Q1FY20

Consolidated Results Q1FY20: (Rs in cr)

Q1FY20 QoQ (%)
Revenue 21,803 1.2
EBITDA 4,471 [3.2]
EBITDA Margin (%) 20.5 [93]
Net Profit (adjusted) 3,798 [6.8]
***EBITDA margin change is bps
Infosys reported an in-line set of numbers for Q1FY20. Constant currency (cc) revenue grew by 2.8% qoq and US Dollar revenue grew by 2.3% qoq and 10.6% yoy to $3,131mn. INR revenue grew by 1.2% qoq and 1.4% yoy to Rs21,803cr against median consensus estimates of Rs21,799cr. EBIT stood at Rs4,471cr, down 3.2% qoq and 1.5% yoy against median consensus estimates of Rs4,442cr. EBIT margin contracted by 93bps qoq and 321bps yoy to 20.5% which is in-line with street expectations. PAT declined by 6.8% qoq but up 5.1% yoy to Rs3,798cr against median consensus estimates of Rs3,703cr.
  • The growth was led by Financial services which grew by 11.3% yoy cc. Communications posted yet another quarter of strong growth (+22.6% yoy cc) on deal ramp-ups. Energy, Utilities, Resources & Services grew by 17.7% yoy cc.
  • Manufacturing grew by 12.8% yoy cc, Hi Tech grew by 14.6% yoy cc, while retail seems to have rebounded, posting 6.9% yoy cc growth.
  • Amongst geographies, North America was particularly strong, up 13.5% yoy cc. Europe and RoW were up ~11% each yoy cc.
  • Digital revenues grew by 41.9% yoy cc and 8.6% qoq cc and now account for 35.7% of total revenues.
  • Attrition continues to trend higher, increasing by 300bps qoq. Utilization excluding trainees improved by 80bps qoq to 83.1%.
  • The company has increased the revenue guidance from 7.5-9.5% in cc terms to 8.5-10% (cc)  for FY20.
  • The company reported highest ever large deal TCV at $2.7bn.

Technical View:

Infosys Ltd ended at Rs. 727.10, up by 6.25 points or 0.87% from its previous closing of Rs. 720.85 on the BSE.
The scrip opened at Rs. 723.30 and touched a high and low of Rs. 730.85 and Rs. 719.35 respectively. A total of 80,53,487 (NSE+BSE) shares were traded on the counter. The stock traded above its 100 DMA.

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