Overview of Infosys earnings that have dragged down the IT index

Infosys has declared its Q1FY17 results on Friday morning. The company’s revenue has increased by 1.4 per cent to Rs 16782 crore in Q1FY17 as compared to previous quarter. Its EBITDA has declined by 4.14 per cent to RS 4447 crore in Q1FY17 from Rs 4639 in Q4FY16. Its EBITDA margin has contracted by 150 basis points to 26.5 per cent in Q1FY17 on a quarterly basis. The net profit of Infosys has dropped by 6.31 per cent to Rs 3457 crore in Q1FY17 as compared to previous quarter. The company’s net profit margin has contracted by 200 basis points to 20.60 per cent in Q1FY17 on a quarterly basis.

On segmental revenue front, Infosys has earned about 27.12 per cent from financial services; 10.99 per cent from manufacturing; 22.16 per cent from energy & utilities, communication and services; 17.05 per cent from retail, consumer packaged goods and logistics; 11.94 per cent from life sciences, healthcare and insurance; 7.87 per cent from hi-tech; 2.87 per cent from others during Q1FY17.

On a yearly basis, the top line of Infosys has increased by 16.92 per cent to Rs 16782 crore in Q1FY17. The company’s EBITDA too has risen by 18.27 per cent to Rs 4447 crore in Q1FY17 as compared to previous fiscal year. Its net profit also has increased by 9.23 per cent to Rs 3457 crore in Q1FY17 on a yearly basis.

On geographical segment front, Infosys’ North America region grew by 2.5 per cent; Europe grew by 0.6 per cent; and India declined by 7.6 per cent; and Rest of the world grew by 6.9 per cent in Q1FY17 on a sequential basis.

Infosys has witnessed revenue growth of 1.7 per cent in constant currency terms; 2.2 per cent in USD terms during Q1FY17 as compared to previous quarter. The company added three clients to USD 100 million plus category taking total count to 17. Infosys company management also revised revenue guidance from 10.5 per cent to 12 per cent in constant currency in FY17.

After disappoining results, Infosys share price tumbled 10 per cent on bourses and is trading at Rs 1064.2 on an intraday basis.

Infosys is engaged in consulting, technology, outsourcing and next-generation services. The company provides business information technology services, comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions.