Infosys Ltd.’s revenue rose in the second quarter, aided by deal wins, even as fears of a slowdown in budget for digital spending persist. The company also raised its full-fiscal revenue growth guidance at the lower end of the band.
The software services exporter’s revenue increased 6% sequentially to Rs 36,538 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 36,470.1-crore consensus estimates of analysts tracked by Bloomberg.
Infosys Highlights Q2 FY23 (QoQ)
Revenue in U.S. dollar terms rose 2.5% to $4,555 million.
Revenue growth in constant currency terms stood at 4%.
Net profit rose 12% to Rs 6,021 crore, against the Rs 5,916.3-crore forecast.
Operating profit rose 14% to Rs 7,873 crore.
EBIT margin stood at 21.5% compared with 20% in Q1.
The company raised the guidance for FY23 revenue to 15-16% from 14-16% projected at the end of the first quarter. Its expects operating margin at 21%-22% against 21-23% estimated earlier.
“Guidance is narrowed due to caution in mortgages, financial services, high tech, telecom and retail keeping in mind all positive and global macro-economic factors, guidance narrowed at higher end of the band from 14-16% to 15-16%,” Salil Parekh, chief operating officer, said.
The software services company has approved a proposal to buy back equity shares worth Rs 9,300 crore. It will repurchase 5,02,70,270 equity shares, representing 1.19% of the total paid-up share capital, according to an exchange filing.