InvestorQ : How do you see the Infosys results for the Jun-20 quarter?
Rashi Mehra made post

How do you see the Infosys results for the Jun-20 quarter?

sarah Leo answered.
2 years ago

The numbers of Infosys were much better than street expectations and that has gone down well with the domestic stock price as well as the ADR prices. Infosys reported 11.4% rise in net profits at Rs.4233 crore in a tough Jun-20 quarter. However, sequential numbers were down 1.45%. Revenues were up 8.5% at Rs.23,665 crore.

During the quarter, Infosys signed deals worth $1.75 billion. After a break, the company is back with its guidance. FY21 revenue growth is expected at 0-2% while OPMs for FY21 is estimated in the range of 21-23%. Infosys reported digital revenues at 45% of overall revenues. The big news was the sharp improvement in free cash flows at Rs.5524 crore.

The sharp spike in operating cash flows was achieved by a mix of cost optimization and better utilization. Even the voluntary attrition declined to 11.7% from 20.2%. The overall top line growth must be looked at in the context of the fact that tech spending this year is likely to be 8% lower as per Gartner estimates.