Infosys revenue up 17% to Rs 16,782 crore

Global software major Infosys on Friday reported Rs 3,436 crore consolidated net profit for first quarter (April-June) of this fiscal (2016-17), a 13.4 percent annual growth.

In a regulatory filing to BSE, the IT major said consolidated revenue for the quarter (Q1) grew 16.9 percent year-on-year (YoY) to Rs 16,782 crore, as per the Indian accounting standard.

Under the International Financial Reporting Standard (IFRS), net income rose 7.4 percent YoY to $ 511 million and gross revenue 10.9 percent YoY to $ 2,501 million ($2.5 billion).

Though consolidated net profit grew 13.4 per cent year-on-year (YoY) to Rs 3,436 crore and revenue 16.9 per cent YoY to Rs 16,782 crore for the April-June quarter (Q1), the IT company lowered dollar revenue guidance for fiscal 2016-17 to 10-11.5 percent from 11.8-13.8 percent projected in April due to currency volatility.

The revised revenue outlook (10-11.5 percent) is based on June 30 exchange rate of Rs 67.53 per dollar and 10.8-12.3 percent on March 31 exchange rate of Rs 66.26 per dollar.

In constancy currency, consolidated revenue for fiscal 2016-17 is expected to grow 10.5-12 percent at June 30 dollar value (Rs 67.53).

Infosys had said in April that its annual revenue would grow 11.8-13.8 percent in dollar value and 11.5-13.5 percent in constant currency of Rs 66.26 per dollar as on March 31.

In rupee value, however, the annual outlook has been revised marginally upwards to 13.7-15.21 percent on June 30 exchange rate (Rs 67.53 per dollar) from 12.7-14.7 percent given in April and 11.7-13.2 percent of March 31 exchange rate (Rs 66.26).

About 97 percent of the IT outsourcing firm’s revenues is billed in dollar and euro currencies as export earnings.

Under the International Financial Reporting Standard (IFRS), Infosys’s net income in first quarter rose 7.4 percent YoY to $511 million and gross revenue 10.9 per cent YoY to $2,501 million ($2.5 billion).

Sequentially, net profit in Q1 declined 4.5 percent from Rs 3,597 crore but revenue was up 2.2 percent from Rs 16,550 posted in previous quarter (January-March) of fiscal 2015-16.

Under IFRS and in dollar value, net income in first quarter declined 4.1 percent from $533 million though revenue was up 2.2 percent from $2,446 million ($2.4 billion) in last quarter (Q4 of fiscal 2015-16).

“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” said Infosys CEO Vishal Sikka.

Operating profit too declined 4.7 percent sequentially to Rs 4,047 crore from Rs 4,200 crore in the last quarter though up 17.4 percent YoY from Rs 3,447 crore in like period a year ago.

Under IFRS in dollar value, operating income of Infosys declined 3.7 percent to $602 million from $625 million sequentially but was up 11.3 percent YoY from $541 million in same period a year ago.