Infosys Q1 net profit grows 5.2% YoY to Rs 3,802 crore, beats estimates

Revenue from operations grew 14 percent to Rs 21,803 crore in the April-June quarter compared with Rs 19,128 crore in the year-ago period, Infosys said in a BSE filing.

Infosys has increased its revenue growth guidance for FY20 to 8.5-10 per cent in constant currency. In April quarter, Infosys had said it expects revenue growth of 7.5-9.5 per cent in FY 2019-20.

"We had a strong start to FY20 with constant currency growth accelerating to 12.4 percent on a year-over-year basis and digital revenue growth of 41.9 percent. This was achieved through our consistent client focus and investments which have strengthened our client relationships. Consequently, we are raising our revenue guidance for the year from 7.5-9.5 percent to 8.5-10 percent,” said Salil Parekh, chief executive officer and managing director.

In US dollars terms, Infosys net profit grew to $546 million in the June quarter from $534 million in the year-ago period, while revenues rose to #3.13 billion as against $2.83 billion.

The company noted that its current policy entails paying up to 70 percent of the free cash flow annually by way of dividend and/or buyback.

The Board has reviewed and approved a revised Capital Allocation Policy after taking into consideration the strategic and operational cash requirements, it said.

"Effective from the Financial year 2020, the company expects to return approximately 85 percent of the free cash flow cumulatively over a five-year period through a combination of semi-annual dividends and/or share buyback and/or special dividends, subject to applicable laws and requisite approvals if any," it added.

Shares of Infosys ended at Rs 730.85, down Rs 10, or 1.39 percent on the BSE.