Bengaluru, July 15 (IANS) Infosys Ltd on Friday reported double-digit net profit and revenue for April-June quarter but lowered annual revenue guidance in dollar value, resulting in its stock plunging on the bourses.
Though consolidated net profit grew 13.4 per cent year-on-year (YoY) to Rs 3,436 crore and revenue 16.9 per cent YoY to Rs 16,782 crore for the April-June quarter (Q1), the IT company lowered dollar revenue guidance for fiscal 2016-17 to 10-11.5 per cent from 11.8-13.8 per cent projected in April due to currency volatility.
As a result, Infosys’s scrip of Rs five per share (face value) plunged to a low of Rs 1,07.50 during intra-trading from a high of Rs 1,195 and as against Thursday’s closing price of Rs 1,175.85 and Friday’s opening price of Rs 1,186.35 on the BSE.
The revised revenue outlook (10-11.5 per cent) is based on June 30 exchange rate of Rs 67.53 per dollar and 10.8-12.3 per cent on March 31 exchange rate of Rs 66.26 per dollar.
In constancy currency, consolidated revenue for fiscal 2016-17 is expected to grow 10.5-12 per cent at June 30 dollar value (Rs 67.53).
Infosys had said in April that its annual revenue would grow 11.8-13.8 in dollar value and 11.5-13.5 per cent in constant currency of Rs 66.26 per dollar as on March 31.
In rupee value, however, the annual outlook has been revised marginally upwards to 13.7-15.21 per cent on June 30 exchange rate (Rs 67.53 per dollar) from 12.7-14.7 per cent given in April and 11.7-13.2 per cent of March 31 exchange rate (Rs 66.26).
About 97 percent of the IT outsourcing firm’s revenues is billed in dollar and euro currencies as export earnings.
Under the International Financial Reporting Standard (IFRS), Infosys’s net income in first quarter rose 7.4 per cent YoY to $511 million and gross revenue 10.9 per cent YoY to $2,501 million ($2.5 billion).
Sequentially, net profit in Q1 declined 4.5 per cent from Rs 3,597 crore but revenue was up 2.2 per cent from Rs 16,550 posted in previous quarter (January-March) of fiscal 2015-16.
Under IFRS and in dollar value, net income in first quarter declined 4.1 per cent from $533 million though revenue was up 2.2 per cent from $2,446 million ($2.4 billion) in last quarter (Q4 of fiscal 2015-16).
“We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1,” said an Infosys statement, citing Chief Executive Vishal Sikka.
Operating profit too declined 4.7 per cent sequentially to Rs 4,047 crore from Rs 4,200 crore in the last quarter though up 17.4 per cent YoY from Rs 3,447 crore in like period a year ago.
Under IFRS in dollar value, operating income declined 3.7 per cent to $602 million from $625 million sequentially but was up 11.3 per cent YoY from $541 million in same period a year ago.
“We navigated a volatile currency environment effectively while our focus on optimising cost efficiency levers helped us during the quarter,” said the statement, citing Chief Financial Officer M.D. Ranganath.