Infosys share price surged ahead by 1 percent early on Friday ahead of its Q1 results, signifying that the best is yet to come.
Infosys share price rose up by 2.21 percent at Rs 1,323.00 on NSE and the stock climbed on BSE Sensex by 1.12%. Now that the cat is out of the bag, let’s see if the Infosys results matched the expectations of the market or not.
Infosys Q1 Results Analysis
The net profit of IT giant, Infosys, witnessed a rise of 3.70% YoY with a net profit of Rs. 3,612 crore for the last quarter. The revenue for the quarter was recorded at Rs. 19,128 crore, increase by 12 percent on YOY basis. Further, the board has recommended a single bonus share for the investor and a stock dividend of one American Depository Share for every ADS held in the portfolio.
Even the revenue in Infosys- business financial services and financial sector has fallen down by 1.5% from the growth of 1.1% in the previous quarter. The operating margin has witnessed a downward spiral too from 23.7% from 24.7% in the previous quarter. The digital business has grown by 8% during the first quarter as compared to 3.6% growth in currency terms in the March quarter. Digital business has recorded revenue of 803 million or 28.4% of total revenue during the quarter.
On the contrary, the Reuters analysts forecasted the company to post revenue of Rs 19,093.4 crore and a profit of 3,747.6 crores during the June quarter.
The company blamed the loss of profits due to ongoing negotiations for sale of Panaya, the Islareli software company that has been put up on sale for the last quarter. It is due to this reason; the company has recorded a stoop in the profits. The company has added more than $100 million plus clients during the quarter.
The main challenge for the IT bellwether is to maintain its attrition rate, which has been increased by 4% and to train the workers in the field of AI to resonate to the growing demands of the clients.
In all, we can say that Infosys has displayed good results even being buoyed by the market sentiments, what do you feel?
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