Infosys Ltd ADR (NYSE:INFY) raised its revenue growth forecast for FY 22

Free $100 Forex No-Deposit Bonus

Infosys Ltd ADR (NYSE:INFY) stock fell 1.32% (As on Oct 14, 11:48:03 AM UTC-4, Source: Google Finance) though the company reported robust quarterly earnings on Wednesday, beating analysts’ estimates, as clients continued to embrace digital initiatives to serve their customers better and put together business continuity plans amid the pandemic-related disruptions. Dollar revenue rose 19.4% in constant currency from a year ago and 6.3% sequentially to $3.9 billion, helped by large deal wins and clients’ acceleration of digital initiatives. During the second quarter, Infosys signed large deals worth a total contract value of $2.15 billion compared with $2.6 billion in the prior quarter. The company’s manufacturing segment grew the most, at 19.1%, led by the deal with Daimler. Its BFSI and retail segments, too, grew over the preceding quarter. Attrition rate rose to 20% from 13.9% in the first quarter. The company has increased the guidance to hire from campuses to 45,000 from 35,000 in the ongoing fiscal. Further,  during the second quarter, Ebit increased 5.6% to Rs 6,972 crore against Rs 6,636.7-crore analyst consensus. Ebit margin contracted 10 basis points to 23.6%, owing to supply-side challenges and wage hikes.

Meanwhile, Infosys will change its management structure by the end of December as its chief operating officer, Pravin Rao, retires. The company will disclose the new structure by the year-end.

INFY in the second quarter of FY 22 has reported the 12% rise in the net profit to ₹5,421 crore from a year earlier, beating Bloomberg consensus estimate of ₹5,277.20 crore. The company had reported the adjusted revenue growth of 20.5 percent to ₹29,602 crore in the second quarter of FY 22, beating the analysts’ estimates for revenue of ₹29,385.70 crore. Infosys saw its digital revenue grow 19.4% from a year ago in constant currency to $2.24 billion, contributing 56.1% to total revenue for the September quarter.

Additionally, the company has announced an interim dividend of Rs 15 per share for the fiscal 2021-22.

Infosys has raised its revenue growth forecast for FY 22 to 16.5-17.5% in constant currency from the earlier projection of 14-16%, buoyed by a strong deal pipeline. However, India’s second-largest software services company retained its operating margin forecast at 22-24%. This is on the back of expectations of winning more contracts from global businesses expanding their digital offerings during the COVID-19 pandemic.

Copyright © 2021. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.