Infosys Q1 PAT skid 6% QoQ to Rs 5,360 cr

25 Jul 2022 , 09:36 AM

On a year on year (YoY) basis, Infosys net profit and revenue in Q1 FY23 increased 3.2% and 23.6%, respectively. In dollar terms, the company reported revenues of $4,444 million, registering a growth of 17.5% YoY for the quarter ended 30 June 2022. Revenues in constant currency terms grew by 21.4% YoY and 5.5% quarter on quarter (QoQ). Operating margin for the quarter stood at 20.1%, a decline of 3.6% YoY and 1.4% QoQ. Infosys said that year on year growth was in double digits across all business segments in constant currency terms. Digital accounted for 61% of overall revenues, growing at 37.5% in constant currency. Net hiring was strong at 21,171.? For the quarter ended 30 June 2022, Free cash flow (FCF) was Rs 5,106 crore, registering a YoY decline of 19.75% while FCF conversion was at 95.2% of net profit. For the year FY23, Infosys increased revenue guidance to 14%-16%. Margin guidance is retained at 21%-23%. Salil Parekh, CEO and MD, said, ?Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organization, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition. We are investing in rapid talent expansion while ensuring rewarding careers for our employees, to better serve evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY 23 revenue guidance to 14%-16%.? Nilanjan Roy, chief financial officer, said, ?We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations. Continued high focus on cash led to strong FCF to net profit conversion at 95.2% and improvement in ROE to 31%.? The company had 1,778 active clients as of 30 June 2022, compared with 1,741 as on 31 March 2022 and 1,659 as on 30 June 2021. Last twelve months IT services attrition rate stood at 28.4% as at 30 June 2022, compared with 27.7% as at 31 March 2022 and 13.9% as at 30 June 2021. Infosys is a global leader in next-generation digital services and consulting. Shares of Infosys were down 0.42% to Rs 1500 on the BSE. Powered by Capital Market – Live News