In a regulatory filing to the BSE Infosys Limited announced its Q2FY17 results on Friday, 14thOctober 2016 (today). The Company registered a 4.95 per cent quarter-on-quarter (QoQ) rise in its net profit to Rs 3,606 crores for the quarter ended 30th September 2016.
The second largest IT firm in the domestic market by sales had reported a net profit of Rs 3,436 crores in June quarter.
The numbers were a bit better than Street estimates, given the firm had already informed the stock exchanges of challenges it was facing, owing to ramp down in RBS contract and other client specific issues. That had led to moderation in its earnings expectations. An ET Now poll of analysts had anticipated a net profit of Rs 3,531.50 crores for the quarter.
However, the company lowered its revenue guidance (constant currency) for FY17, which hurt the sentiment.
The company said its net sales stood at Rs 17,310 crores for the quarter against Rs 16,782 crores revenue it reported in the June quarter. The ET Now poll had forecast Rs 17,189.30 crores revenue for the September quarter, up 4.48 per cent QoQ.
The dollar revenue of the IT firm for the quarter stood at US$ 2,587 million against US$ 2,501 million in June quarter. As per analysts poll, the Vishal Sikka-led firm was expected to report a 2.52 per cent quarter-on-quarter growth in the terms of dollar revenues to US$ 2,564 million.
The company cut its FY17 revenue guidance for second time this year to 8 to 9 per cent against 10.5 to 12 forecasts earlier. This was largely in line with Street expectations. The dollar revenue guidance was lowered to 7.5 to 8.5 per cent from 10 to 11.5 per cent earlier.
The company will conduct a 60 minute conference call at 11:30 AM IST where the senior management will discuss the company's performance and answer questions from participants.
According to the leading brokerage houses, Results from tech majors like that of Accenture and Cognizant have indicated mixed demand environment, with stronger adoption of digital technologies. However, the market and the investors will be concerned about the impact of Brexit and the resultant impact on demand in the short term. US elections will also create uncertainty for the sector. Structural growth drivers for Indian IT continue to be in place, but in short term, there is increased uncertainty on demand outlook.
The company board has also announced a dividend of Rs 11 per share. The stock plunged over 5 per cent below Rs 1,000-level following the numbers.
Meanwhile Infosys share price made a 52 week low of Rs 996.25. Currently the share price is trading at Rs 1,037.45, down by 1.42 per cent.
Get the historical share price performance of the share at Infosys share price history.
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