Infosys shares rise on back of second quarter earnings
India's second largest software exporter reported strong revenue and deals worth US$2 billion, but margins remained flat
Shares of India’s second largest software exporter Infosys hit an intra-day high of 721 rupees, up 3.5% on the Bombay Stock Exchange in early morning trade on Tuesday on the back of its second quarter earnings. The Bangalore-based company reported strong revenue figures but missed margin performance expectations for the quarter.
During the quarter, Infosys reported 41.1 billion rupees (US$558 million) in net profit, a growth of 10.3%, compared with the same period of 2017. Net profit grew 13.78% over the previous quarter.
Revenue for the period, at 206.09 billion rupees (US$2.8 billion), showed a healthy growth rate of 17.3% on a year-on-year (YoY) basis. Its dollar revenue was $29.21 billion, a growth rate of 7.1% on YoY basis and 3.2% sequentially. The Bangalore based company’s fresh deals worth US$2 billion in the second quarter have also enthused investors and analysts.
However, Infosys was unable to benefit from the depreciation of the rupee as Indian software exporters bill most clients in dollars. The local currency declined 5.6% during the quarter. The company’s margin remained flat at 23.7% for the quarter compared with a previous prediction of 24.4%.