Infosys hits a new high

Infosys, for Q1FY21 posted a 2% (QoQ) decline in consolidated net profit at Rs.4233 crore, which was way ahead of what most analysts had estimated. Revenue from operations rose almost 2% to Rs.23,665 crore while dollar revenue fell 2.4% to $3121 million. Operating margin was at 22.7%

That apart, the company surprised the Street by giving full-year constant currency revenue growth guidance. It expects its constant currency revenue growth in the range of 0-2%. Operating margin is expected at 21-23% for FY21.

During the quarter, digital revenue contributed 44.5% to total revenue v/s 41.9% sequentially.

It added two new clients in $10 million+ band, 11 clients in $1 million+ category though lost 3 clients in $100 million+ band and one client in $50 million+ category.

Its total active clients at the end of June quarter stood at 1,458 v/s 1,411(QoQ).

Free cash flow for the quarter was at Rs 5,524 crore, an increase of 63.5% (YoY) while voluntary attrition for IT services declined to 11.7% v/s 20.2% (QoQ).

The market is obviously thrilled to bits with this and the stock, currently the top gainer on the BSE, surged from yesterday’s close of Rs.831.45, to hit a new 52-week high at Rs.952.