Infosys reports a net profit of Rs.5,350Cr. in Q1 FY23.
IT leader, Infosys reported a net profit of Rs. 5,360 crores. compared to Rs.5,195 in June 2021. The firm missed the street estimation of Rs.5,550 crores.
Total revenue for India’s second-largest firm was at Rs. 34,470 crores
a jump of 23.6% YOY. The operating margin was at 20.1%, down by
1.4% QOQ. It managed to beat the revenue estimates but disappointed PAT and margin. The EBIT margin declined to 20.1% by 150 bps onshore and offshore wake hikes were higher resulting in lower PAT because of constrained talent supply. Though the quarterly attribution was down and jumped from 27.7% in March 2022 to 28.4% in the June quarter, the
attribution elevated by 70 bps. Infosys was double-digit across
business segments in constant currency. Digital technologies grow by 37.5% CC. The total free cash flow during the June quarter was at 5,106 crores and improvement in ROE to 31%. Large-deal TCV for the quarter was at 170 crores down by 25% QOQ and 34% YOY. They have updated earning guidance from 13% YOY to 14%- 16% YOY giving a strong demand.
The net addition stood at 21,171 employees VS 13,599 in last 4 quarter.
The company is on track to hire 50,000 fresher in FY23. The company got 19 new deals. Management said that they have a healthy pipeline for the near future. The total number of active clients was at 1778 clients compared to 1741 clients in March 2022 and 1195 in June 2021. The top 10 clients contribute 13% of total revenue and the top 10 clients contribute around 20% of the revenue. Revenue per employee was down by 1.4% QOQ to US$56.9K due to investments in fresher and the total employees were recorded at 3,35,186.
We consider the margins to be under pressure due to an increase in travel, wage hikes in senior management, and supply side-cost in Q2 FY23. The management mentioned in the concall that the pricing is stable, thus we expect 21% to 25% in the near future. The scrip closed at Rs.1,503 down by
0.81 %. The stock touched a 52-week high of Rs. 1953.90 and a 52-week low of Rs.1,367.15. The Bangalore-based firm’s market cap is at Rs. 6.30 lakh crores.