Infosys Q1 consolidated net profit up 3.7% to Rs 3,612 crore; company announces 1:1 bonus issue

Bengaluru: The country’s second-largest software services major Infosys on Friday reported 3.7 percent growth in consolidated net profit at Rs 3,612 crore for the quarter ended on 30 June, 2018, compared to a net profit of Rs 3,483 crore in the year-ago period. Revenues from operations of the Bengaluru-based firm grew 12 percent to Rs 19,128 crore in the April-June quarter compared to Rs 17,078 crore in the year-ago period, Infosys said in a BSE filing. Infosys board has approved the issuance of one free share for every share held (that is a 1:1 bonus issue). “The Board in its meeting…has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined,” the company said in the regulatory filing. [caption id=“attachment_3969941” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Infosys has maintained revenue growth outlook of 6-8 percent in constant currency for fiscal 2019. It had also maintained FY 2018-19 operating margin guidance in the range of 22-24 percent. “The strong revenue and margin performance in this quarter shows that our dual emphasis on agile digital and AI (artificial intelligence) driven core services is resonating with our clients”, Salil Parekh, CEO and MD of the company said. He added the company sees “good traction in the market”. The results were announced after the market hours. Infosys shares closed 1.12 percent higher at Rs 1,309.1 apiece on BSE. The company had said in April that it will pay up to Rs 13,000 crore to shareholders including Rs 2,600 crore through special dividend, as the company looked to meet shareholder demands for higher returns. Infosys had also then said that it will continue with its policy of returning up to 70 percent of its free cash. Infosys’ scorecard came just days after India’s largest software exporter TCS posting a 23.4 percent rise in consolidated net profit to Rs 7,340 crore for June quarter, delivering what analysts said were street-beating results. The Tata Group company saw its income from operations growing at 15.8 percent to Rs 34,261 crore for the first three months of the current financial year, registering strong growth on all counts.