Infosys Ltd's Q2FY20 consolidated net profit rises 5.8% qoq to Rs4,019cr: Beats Estimates

The company’s consolidated revenue stood at Rs22,629cr, up 3.8% qoq and 9.8% yoy.

Oct 11, 2019 04:10 IST India Infoline Research Team

Infosys Ltd Q2FY20

Consolidated Results Q2FY20: (Rs in cr)

Q2FY20 QoQ (%)
Revenue 22,629 3.8
EBIT 4,912 9.9
EBIT Margin (%) 21.7 120
Net Profit (adjusted) 4,019 5.8
***EBIT margin change is bps
Infosys reported a good set of numbers for Q2FY20. Constant currency (cc) revenue grew by 3.3% qoq and 11.4% yoy. US Dollar revenue grew by 2.5% qoq and 9.9% yoy to $3,210mn. INR revenue grew by 3.8% qoq and 9.8% yoy to Rs22,629cr against consensus estimates of Rs22,521cr. EBIT stood at Rs4,912cr, up 9.9% qoq and 0.4% yoy against consensus estimates of Rs4,863cr. EBIT margin expanded by 120bps qoq but contracted by 204bps yoy to 21.7% which is marginally better than street expectations. PAT grew by 5.8% qoq but down 2.2% yoy to Rs4,019cr against consensus estimates of Rs3,210cr.
  • Digital revenue grew by 38.4% yoy cc and 10.7% qoq cc and now accounts for 38.3% of overall revenues.
  • Growth was broad-based except for Retail. Financial services grew by 10.3% yoy cc, Communication was up 19.2% yoy cc, Energy, Utilities, Resources & Services was up 19.1% yoy cc and Manufacturing was up 16.9% yoy cc.
  • Retail was flattish at 1.1% yoy cc, while Hi Tech was up 11.7% yoy cc. Life Sciences was up 10.9% yoy cc.
  • Amongst geographies, North America was up 11.9% yoy cc. Europe and RoW were up 13.4% yoy cc and 1.9% yoy cc, respectively.
  • The company has increased the lower end/band of the revenue guidance from 8.5-10% (cc) to 9.0-10% for FY20.
  • Attrition has come down from 23.4% in Q1 to 21.7% in Q2FY20. Utilization excluding trainees improved by 180bps qoq to 84.9%.
  • The company reported large deal TCV at $2.8bn.

Technical View:

Infosys Ltd is currently trading at Rs. 804.85, up by 21.95 points or 2.8% from its previous closing of Rs. 782.90 on the BSE.
The scrip opened at Rs. 785.95 and has touched a high and low of Rs. 813 and Rs. 777 respectively. So far 1,33,23,650 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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