Infosys surprises with Q1 results

IT major Infosys declared its Q1FY15 scorecard. The company's result were better than the street expectations and the stock was up by more than 1.5% post the announcement of the results.

Infosys posted marginal de-growth of 3.5% in its bottomline to stand at Rs 2886 crore in Q1FY15 as against Rs 2992 crore reported in the previous quarter Q4FY14. The revenues dropped by 0.8% to Rs 12770 crore in Q4FY14 against Rs 12875 crore on a sequential basis. The de-growth in net profit is predominantly due to the de-growth of 0.9% in cost of sales on sequential basis. The Q1FY15 operating margin showed expansion of 35 basis points sequentially to 25.15%. On positive front, the company continue to give FY15 revenues guidance of 7%-9% in USD terms and 5.6%-7.6% in INR terms which is better that street expectation. On yearly basis, Infosys posted a revenues growth of 13.3% and a net profit growth of 21.6% during the same quarter last year.

In dollar terms too, Infosys showed a net profit de-growth of 1% to USD 482 million in Q1FY15 on sequential basis. The company's revenue grew by 15.3% to USD 2133 million in Q1FY15 on yearly basis. The earnings per share (EPS) showed a 15.1% growth to USD 0.84 in Q1FY15 on yearly basis.

On geographic distribution front, Infosys showed increase in revenue from North America to 60.8% in Q1FY15 against 59.8% in Q4FY14. The revenue from Europe showed a decrease to 24.5% in Q1FY15 against 25.2% in Q4FY14. On the other hand, the revenue from India and Rest of the World remained almost at same levels and stood at 2.4% and 12.3% respectively during Q1FY15. On industry front, the company revenue from BFSI, Manufacturing, Retail & Life sciences and Energy, Utility, Communication & Services were at the same levels of Q4FY14 and stood at 33.4%, 23.2%, 23.8% and 19.6% per cent respectively.

“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization. As I transition the CEO mantle to Vishal, I am confident that he will leverage this strong foundation to take Infosys to greater heights. I wish him the very best.” said S. D. Shibulal, CEO and Managing Director. U. B. Pravin Rao, COO, said “We saw positive trends in our large deal wins during the quarter. We believe that this momentum will hold us in good stead as we focus on increasing volumes. Employee attrition rates are worrisome and we are implementing various initiatives to retain good talent.”