Infosys profit rises by 7% to Rs. 3,726cr in Q2
Infosys, India's second-largest IT company, reported a Rs. 3,726-crore net-profit for the July-September quarter, posting 7% Quarter-on-Quarter rise and 3% Year-on-Year increase. Its operating margin stood at 24.2% and consolidated EBIT (earnings before interest and tax) at Rs. 2,728cr. It reduced its revenue guidance from 6.5-8.5% to 5.5-6.5%. The Q2FY18 results are the first after co-founder Nandan Nilekani's return to the helm. Read more!
Infosys's dollar revenue
In terms of dollars, the company's revenue increased by 2.9% to $2,728 million sequentially. In Q1 of FY18, Infosys posted revenue of $2,651 million.
Improving operational efficiencies enabled us to deliver stable margins: CFO
Infosys Interim CEO & MD, UB Pravin Rao, said they continue to focus on software-enabled services, accelerating new services portfolio growth. He added in Q2FY18, they quickly responded to changes in management and Board to minimize any negative impact on business, allowing Infosys to deliver growth across all units. Infosys CFO, MD Ranganath, said their focus on operational efficiencies helped in achieving stable margins.
Infosys CFO Ranganath's statement
Infosys Chief Financial Officer, MD Ranganath, stated: "We have taken several steps during the (second) quarter towards our capital allocation policy covering Rs. 13,000 crore share buyback, coupled with interim dividend of Rs. 13 per share for enhancing shareholder returns."
Infosys experienced major management crisis in recent past
On 18 August, Vishal Sikka resigned as the CEO after a series of allegations by co-founder Narayana Murthy, especially over the Rs. 1,250cr-acquisition of Israel-based IT company, Panaya. Following Sikka's resignation, several board members, including Co-Chairman R Seshasayee, exited. Soon, co-Founder Nandan Nilekani returned to the board after seven years as Non-Executive Chairman while COO Pravin Rao was made the Interim MD and CEO.
Infosys Board has two key issues
Greyhound Knowledge Group CEO and Chief Analyst, Sanchit Vir Gogia, said: "The Infosys Board has two key issues to manage currently - one, ensuring stability by way of managing stakeholder sentiment and two, offering visibility by way of sharing concrete guidance."
