Sequentially Infosys registered 6% rise in consolidated sales to Rs 19128 crore for the quarter ended June 2018.
OPM fell 200 basis points to 24.6% which saw OP fall 2% to Rs 4703 crore.
Other income grew 11% to Rs 726 crore. After providing for depreciation (down 5% to Rs 436 crore), PBT stood at Rs 4993 crore against Rs 5006 crore.
Provision for taxation grew 5% to Rs 1381 crore after which PAT fell 2% to Rs 3612 crore.
YoY quarterly results
On yoy basis, in June 2018 quarter Sales grew 12%. OPM fell 210 basis points which saw OP grow 3%. PBT grew 1%and net profit went up 4%.
FY 2018 results
In FY 2018, Infosys registered 3% rise in sales to Rs 70522 crore. OPM fell 40 basis points to 26.8% which saw OP grow 2% to Rs 18893 crore. Other income grew 8% to Rs 3311 crore. After providing for depreciation, (up 9% to Rs 1863 crore), PBT grew 2% to Rs 20341 crore. Provision for taxation fell 24% to Rs 4241 crore after which PAT fell grew 12% to Rs 16100 crore. Minority interest (MI) jumped 137% to Rs 71 crore. Thus finally net profit went up 12% to Rs 16029 crore.
Guidance
Going ahead, revenue guidance for 2018-19 in constant currency stood at 6-8% and USD terms stood at 7-9%. It expects a gradual uptick in margins in the coming quarters and remains confident of remaining within its 22-24% OPM band for FY19.
With the increase in Digital contribution which has relatively higher gross margin business, improvement in productivity of FP projects and onsite pyramid rationalization, margins are expected to remain in the guided range despite planned investments.
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.
The company sees good traction starting to come in the banking and insurance space, and especially in insurance activity.
The outlook of the financial services vertical remains positive and it sees it as the foundation of driving the business.
Momentum in Regional Banks, Insurance and Europe continues to be strong.
Spends in the US are starting to improve.
Bonus
It declared 1:1 bonus issue of equity shares and 1:1 stock dividend of American Depositary Shares.
Valuation
The stock trades at Rs 1301.
Infosys: Consolidated Results
| 1806 (3) | 1803 (3) | Var. (%) | 1706 (3) | Var. (%) | 1803 (12) | 1703 (12) | Var. (%) | |
| Sales | 19128.00 | 18083.00 | 6 | 17078.00 | 12 | 70522.00 | 68484.00 | 3 |
| OPM (%) | 24.6 | 26.6 | 26.7 | 26.8 | 27.2 | |||
| OP | 4703.00 | 4812.00 | -2 | 4561.00 | 3 | 18893.00 | 18604.00 | 2 |
| Other Inc. | 726.00 | 652.00 | 11 | 814.00 | -11 | 3311.00 | 3080.00 | 8 |
| PBIDT | 5429.00 | 5464.00 | -1 | 5375.00 | 1 | 22204.00 | 21684.00 | 2 |
| Interest | 0.00 | 0.00 | -- | 0.00 | -- | 0.00 | 0.00 | -- |
| PBDT | 5429.00 | 5464.00 | -1 | 5375.00 | 1 | 22204.00 | 21684.00 | 2 |
| Dep. | 436.00 | 458.00 | -5 | 450.00 | -3 | 1863.00 | 1703.00 | 9 |
| PBT before EO | 4993.00 | 5006.00 | 0 | 4925.00 | 1 | 20341.00 | 19981.00 | 2 |
| Tax | 1381.00 | 1316.00 | 5 | 1371.00 | 1 | 4241.00 | 5598.00 | -24 |
| PAT | 3612.00 | 3690.00 | -2 | 3554.00 | 2 | 16100.00 | 14383.00 | 12 |
| Share assoc. cos | 0.00 | 0.00 | -- | -71.00 | 100 | -71.00 | -30.00 | 137 |
| Net profit | 3612.00 | 3690.00 | -2 | 3483.00 | 4 | 16029.00 | 14353.00 | 12 |
| EPS * (Rs) | 66.4 | 67.8 | 64.0 | 73.7 | 1274.7 | |||
| * On post-bonus Paid up equity capital of Rs 1088 crore, Face value Rs 5, Figures in crore Source: Capitaline Databases EO: Extraordinary items EPS is adjusted after EO and relevant tax |
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