Infosys gives annual guidance of up to 2% growth this year as profit plummets by 4.8% and revenue dips 2% in Q1
Jul 16, 2020, 08:14 IST
- Infosys profit is down 4.8% and revenue has dipped by 2% in Q1FY21 on a quarter-on-quarter basis.
- Infosys CEO Salil Parekh announced annual guidance of between 0% to 2% this year.
- The company has announced Bobby Parikh as its new independent director.
- Infosys share price was up by over 6% ahead of the earnings results today.
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Infosys announced its first-quarter results today with a 2% fall in revenue as compared to the previous quarter and a 4.8% drop in net profit from three months ago. Infosys CEO Salil Parekh as issued an annual guidance of 0% to 2% for the year. Our operating guidance for the full year is 21% to 23%," he said.
Infosys share price was up by over 6% today before the earnings were announced to touch ₹831.45 — the highest for stock value for it this month so far.
“Operating margin expanded to 22.7% driven by the preemptive deployment of our strategic cost levers along with tactical opportunities triggered by the COVID situation”, said Nilanjan Roy, CFO. The company’s operating margins have grown by 1.6% as compared to last quarter.
Infosys has added 47 new clients to its docket but the number of $100 million clients has dipped by two. “Our large deals win were at $1.7 billion in the quarter,” said CEO Salil Parikh during the earnings call adding that the company announced its new partnership with VanGuard on July 14.
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The total number of employees is down by 1.2% as Infosys announced during the Jan-March results that it will pause hiring in the short run until a has a clearer view of how the coronavirus pandemic will grow.
India’s IT giant has also brought Bobby Parikh — who is the managing partner of Bobby Parikh Associates — on board as its new independent director. “Parikh’s particular area of focus is providing tax and regulatory advice in relation to transactions and other forms of business reorganizations, whether inbound, outbound or wholly domestic,” said Infosys statement.