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More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor<doc-sep>Infosys Q1 Earnings: HDFC Securities estimates Infosys to report a revenue of $2,835 million. Infosys is set to report its earnings for the April-June quarter post-market hours today. Analysts and investors will monitor the quarterly report card by the country's second largest IT company closely. All eyes will be on the revenue guidance, performance of the digital and for banking, financial services and insurance (BFSI) units, among others. Investors will also look out for the IT major's commentary on movement of the rupee against the US dollar. Prolonged weakness in the rupee is likely to impact Infosys profitability in the June quarter, say analysts. Brokerages expect Infosys to post a growth in revenue. HDFC Securities estimates Infosys to report a revenue of $2,835 million, an increase of 1.1 per cent and 7 per cent on a sequential (quarter-on-quarter) and annual (year-on-year) basis respectively. It estimates the company's rupee revenue at Rs 18,996 crore, a growth of 5.1 per cent and 11.2 per cent on a QoQ and YoY basis respectively. IDBI Capital forecasts a revenue growth of 5.6 per cent and 11.8 per cent on a quarter-on-quarter (QoQ) and year-on-year (YoY) basis respectively. The brokerage expects the EBIT margins to decline by 90 basis points (bps) QoQ impacted by salary increase and visa costs. The impact, it says, would be partly offset by rupee depreciation. Here are five things to expect from Infosys' June quarter results: 1. FY19 growth outlook: Both HDFC Securities and IDBI Capital expect Infosys' revenue guidance in constant currency terms to be unchanged at 6-8 per cent. 2. EBIT margin guidance: IDBI Capital expects the company to maintain its EBIT margin guidance of 22-24 per cent. HDFC Securities expects an upside risk of 50 basis points (0.5 per cent). 3. Performance of BFSI, retail, digital units 4. Deal wins: IDBI Capital will watch out for the company's commentary on calendar year 2018 client budget, especially large deals, deal wins and pipeline/pricing environment. 5. Mergers & acquisitions: Investors should watch out for any commentary on mergers and acquisitions and capital allocation, say analysts. Meanwhile, Infosys was among the top gainers in the Sensex and Nifty pack today.<doc-sep>Infosys Ltd. missed analyst expectations in the April-June quarter as its margin contracted and the key banking and financial services vertical underperformed. Net profit of India’s second-largest software services provider fell 2.1 percent quarter-on-quarter to Rs 3,610 crore during the April-June period, Infosys said in its exchange filing. That compares with the Bloomberg consensus estimate of Rs 3,741 crore. The bottom line was hit by a Rs 270 crore reduction in the fair value of Panaya. Revenue rose 6 percent sequentially to Rs 19,130 crore. Revenue in dollar terms grew 0.9 percent to $2,831 million. Operating profit fell 2 percent to Rs 4,267 crore. Operating margin contracted 100 basis points to 23.7 percent, within the 22-24 percent guidance that the firm had given earlier. Sales growth forecast maintained at 6-8 percent for 2018-19 The company, after a boardroom coup and leadership change last year, is preparing for the opportunities ahead. For that, it will continue to invest in digital services ranging from big data analytics to artificial intelligence that deliver higher margins so that it can counter lower spending and a move to automation by its clients. “With our agile digital business growing sequentially at 8 percent in constant currency and increase in our large deal wins to over $1 billion, we see good traction in the market,” Managing Director and Chief Executive Officer Salil Parekh said in the media statement.<doc-sep>Infosys, the country’s second-largest IT services firm, will declare its first-quarter earnings after market close on Friday and the focus will be on software maker's revenue growth and margins. Expectations are running high for Infosys results following stellar quarterly performance by larger rival Tata Consultancy Services (TCS) earlier this week. TCS surprised the street by reporting better-than-expected numbers in the first quarter, boosted by strong demand in areas like cloud transformation, cyber-security and data privacy, and automation. Will Infosys follow suit? A CNBC-TV18 poll showed brokerages expect Infosys to post a growth in revenue while EBIT margins are likely to see a drop in the quarter ended June. Lets take a quick look at the consensus forecast of analysts in the poll: Dollar revenue is expected to rise 1.5% quarter-on-quarter to $2.85 billion Rupee revenue seen rising 5.65% to Rs 19,104 crore EBIT likely to rise to Rs 4,520 crore in Q1 vs Rs 4,472 crore in Q4 EBIT margin seen falling to 23.66% vs Rs 24.7% PAT likely to rise 1.6% to Rs 3750 crore Outlook Any revision in margin guidance due to the rupee depreciation will be key. Prolonged weakness in the rupee is likely to impact Infosys profitability in the June quarter, say analysts. Commentary Any comments on mergers and acquisitions and capital allocation. Commentary on verticals such as BFSI and healthcare remain key. • Retail: The sector is weak due to store closures in the US and the Amazon effect but Infosys expects pickup in growth in Europe and other parts of the world. Other factors to watch Growth from financial services vertical<doc-sep>
Infosys Q1 results 2019: Infosys, country's second largest software services exporter, posted a 3.7 per cent rise in quarterly profit on Friday, below market expectations. Profit for the quarter ended June came in at Rs 3610 crore versus Rs 3483 crore a year ago. Analysts, on average, had expected a net profit of Rs 3740 crore. The Bengaluru-headquartered company posted a 12 per cent rise in revenue from operations to Rs 19,128 crore. In dollar terms, revenue jumped 6.8 per cent on a yearly basis. Infosys Q1 sales were up 6 per cent in constant currency terms, while operating margins stood at 23.7 per cent, which was at the upper quartile of the guidance. The IT giant retained its FY19 operating margin guidance at 22-24 per cent, and revenue guidance in constant currency terms at 6-8 per cent. The company also announced 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares. “The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI-driven Core services is resonating with our clients”, said Salil Parekh, CEO and MD, Infosys. “With our Agile Digital business growing sequentially at 8% in constant currency and increase in our large deal wins to over US$ 1 billion, we see good traction in the market,” he added. Infosys Q1 FY19 Results - Management Commentary https://t.co/lhsQzI32bv — Infosys (@Infosys) July 13, 2018 “Our emphasis on deepening client relationships resulted in strong client metrics including increase in the number of $100 million+ clients to 24”, said U B Pravin Rao, COO, Infosys. “Utilization excluding trainees reached an all-time high of 85.7%,” he added.