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Q2 Results: Infosys Shows Better Results Than TCS, Still Cuts Revenue Projections
Photo: STR/AFP/Getty Images
In the latest Q2 reports, the two Information Technology (IT) giants in the country reported a lower than expected growth in profit. Surprisingly, Bangalore based Infosys performed better that the larger rival Tata Consultancy Services (TCS).
Infosys reported a 6.1% rise in its consolidated net profit for the September quarter, which now amounts to Rs. 3,606 crore. On the other hand, the industry leader TCS reported a 4.6 percent growth in consolidated bottomline figures at Rs. 6586 crore for the latest quarter. On the sequential growth front- Infosys reported a rise of 3.1 percent, while TCS reported a mere 1 percent sequential growth.
Though Infosys slashed its revenue guidance for the second time in FY17, from 10.5- 12 percent 8-9 percent, the giant managed to outperform its larger rival. Infosys now expects its dollar revenue to grown between 8.2 percent to 9.2 in the current financial year.
On Friday, Infosys reported a rise in total revenue with $2.85 billion for the latest quarter, compared to the last quarter’s revenue of $2.5 billion. In constant revenue currency terms, the revenue grew 3.9 percent. Net profit of the company was reported to have risen by 5.5 percent, reaching $539 million from $511 million in the April-June period.
Vishal Sikka, CEO of Infosys, said that innovation and operational initiatives helped the firm’s core IT services business show “good progress” in the second quarter.
The company’s operating margin rose to 24.9 percent at the end of the September quarter, compared with 24.1% at the end of June period. 78 new clients joined the firm in the latest quarter, taking the total number of customers to 1,136.
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