Infosys, one of the leading Information technology (IT) majors headquartered in Bengaluru, on Wednesday reported a 22.7% year-on-year (YoY) jump in June 2021 (Q1FY22) consolidated profit at Rs 5,195 crore, over Rs 4,233 crore posted in corresponding quarter year-ago. Sequentially, the figure grew 2.3% as against Rs 5,076 crore.
The company’s Q1 consolidated revenue came in at Rs 27,896 crore, up 17.87% YoY, as against Rs 23,665 crore posted in the June quarter of FY21. The topline grew 6% on a quarter-on-quarter basis, compared with Rs 26,311 crore reported in the preceding quarter.
The figure missed analysts’ expectations as analysts had pegged bottom-line growth at 27-30%. Earlier, the revenue guidance for FY22 stood at 13-15%.
Infosys CEO and MD Salil Parekh said he is proud of his employees, who as ‘One Infosys’ demonstrate resilience and commitment in delivering for clients.
“Driven by the dedication of our employees and the trust of our clients, we grew at the fastest pace in Q1 in a decade, at 16.9% year-on-year and 4.8% quarter-on-quarter in constant currency. This gives us confidence to increase our revenue growth guidance to 14%-16%. As Infosys completes forty remarkable years, its continuing success and global impact are a testament to the vision of the founders and all the leaders who have shaped the company,” said Salil Parekh.
EBIT margin for the quarter stood at 23.7% as against 22.7% a year ago. On QoQ basis, it declined 0.8% from 24.5% reported in the preceding quarter.
Infosys Chief Financial Officer Nilanjan Roy said the company remains confident of delivering on the margin guidance, underpinned by its comprehensive cost optimisation program, despite increasing cost headwinds arising largely from compensation review, talent acquisition and retention.
Dollar revenue for the June quarter grew 21.2% YoY and 4.7% QoQ to $3,782 million, the company said in a release to the exchanges. Revenue growth in Constant Currency (CC) terms stood at 16.9% YoY and 4.8% QoQ. Large deal flows remained strong with TCV of $2.6 billion in Q1, the company added.
Infosys Chief Operating Officer Pravin Rao said employee wellbeing is of paramount importance to the company and Infosys had multiple interventions in this regard including facilitating vaccination for them and their dependents.
“We rolled out several intense employee engagement initiatives including career acceleration opportunities, compensation reviews and learning & development interventions. Our clients continue to be supportive of the multiple initiatives we have undertaken; they value the delivery commitments we have met even during these extraordinary times,” said Pravin Rao.
He also pointed out that as the demand for digital talent explodes, rising attrition in the industry poses a near-term challenge. “We plan to meet this demand by expanding our hiring programme of college graduates for FY 22 to around 35,000 globally,” he added.