InvestorQ : How were the quarterly results of Infosys for the September 2022 quarter?
Debbie Mascarenhas made post

How were the quarterly results of Infosys for the September 2022 quarter?

Answer
image
Arti Chavan answered.
1 month ago
Follow

For the September quarter, Infosys Ltd reported 23.43% growth in revenues at Rs36,538 crore. In constant currency (CC) terms, the total revenues of Infosys were up 18.8% yoy and 4% sequentially. Infosys reported total contract value (TCV) at an impressive $2.7 billion for the second quarter of fiscal FY23. To the credit of Infosys, its focus on digital is paying off as digital revenues accounted for 61.8% of total revenues in the quarter as against just 56.1% last year. Dollar revenue growth was 45% for the manufacturing vertical and 24.1% for the energy vertical. In terms of regional mix, Europe grew at over 25% while North American grew at over 18% during the second quarter ended September 2022. Here is a summary.

Infosys Ltd

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 36,538

₹ 29,602

23.43%

₹ 34,470

6.00%

Operating Profit (Rs cr)

₹ 7,873

₹ 6,972

12.92%

₹ 6,914

13.87%

Net Profit (Rs cr)

₹ 6,021

₹ 5,421

11.07%

₹ 5,360

12.33%

Diluted EPS (Rs)

₹ 14.34

₹ 12.85

₹ 12.76

OPM

21.50%

23.60%

20.1%

Net Margins

16.48%

18.31%

15.55%

Let us now turn to the profit performance of Infosys. PAT for September 2022 quarter grew 11.07% to a level of Rs6,021cr but the overall operating margins were still disappointing at 21.5%. This is sharply lower than 23.6% operating margins reported in the similar quarter last year. Manpower and travel costs spiked sharply in the quarter leading to this sharply lower operating margins.

Attrition remains an issue for Infosys with voluntary attrition spiking by 700 bps on a yoy basis at 27.1%. While this is down sequentially, it is higher than the industry median attrition levels, which is disconcerting. Infosys declared a dividend per share of Rs16.50 per share as well as a buyback of shares worth up to Rs9,300 crore. Net margins for Q2FY23 stood at 16.48% against 18.31% yoy but higher on a sequential basis by 93 basis points.

7 Views