Infosys second quarter earnings deliver on all fronts led by highest ever deal wins worth $3.15 billion — raises annual guidance to 2% to 3%

Infosys rakes in $3.15 billion in new deals in the second quarter of the current fiscal FY2021IANS
  • Infosys net profits are up by 16.2% and revenue jumped by 4% over the last three months
  • The Indian IT services company raked in deal wins worth $3.15 billion between July and September.
  • Infosys has also declared an interim dividend of ₹12 per equity share and revised revenue guidance for the current fiscal to between 2% to 3%
India’s second-largest IT services company Infosys has reported an 16.2% jump in net profits and 4% increase in revenue in constant currency (CC) over the last three months. It’s total deal wins amounted to $3.15 billion.

Infosys profit over the last five quartersCompany filings/BSE

It has declared an interim dividend of ₹12 per equity share and revenue growth guidance has been increased to to 2% to 3% for the current fiscal in constant currency .

Margins were also stable, expanding by 270 basis points (bps) — one hundred bps make 1% — to hit 25.4% in the second quarter.
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Infosys' margins over the last give quartersCompany filings/BI India

Infosys CFO Nilanjan Roy attributed Infosys’ success to the company’s three pronged strategy to defer costs, cutting down on discrete expenditure and optimising the strategic cost levers of onsite offshore pyramid, automation and subcontractors.

“Going into the second half, some of these cost increases will now come back like wage hikes, promotions, hiring etc,” said Roy.

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This is marked improvement over last quarter when in profit was down by 4.5% and revenue saw a 2% hit quarter-on-quarter (QoQ).

Even so, the choppy trade in Indian stock markets, led by profit booking in Wipro weighed on Infosys today. The company’s share price ended lower by nearly 2%. However, overall, the stock has gained 54.4% this year so far overcoming the impact of the coronavirus pandemic.

Infosys share price since JanuaryBSE/BI India

Here’s a full list of deals that Infosys announced over the last three months:
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ClientDeal descriptionVertical
Old National BankInfrastructure modernisationBFSI
VanguardDigital transformation and BPOBFSI
LanxessInformation management system (IMS)Manufacturing
Con EdisonBPOUtilities
National Bank of BahrainFinacleBFSI
GenesysBPOTechnology
Essential UtilitiesEnterprise solutionsUtilities
Prabhu BankFinacle Core Banking SolutionBFSI
WANdiscoCloud migrationTechnology
French Tennis FederationDigital transformationMedia

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Wipro’s share price dips by over 6% after earnings — analysts believe it will take a while to catch up to TCS and HCL Technologies

Wipro CEO Thierry Delaporte outlines five-point strategy for growth — looking at more acquisitions and larger deals

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