According to reports, IT major Infosys testifies a 3.17 percent rise in net profit to Rs. 5,360 crore in the June quarter compared with Rs. 5,195 crore in the same quarter last year.

India's second largest IT company reported a consolidated revenue of Rs. 34,470 crore in Q1, which was higher than the analyst estimate of Rs. 34,150 crore. On a YoY basis, the revenue jumped 23.6 percent.

In constant currency terms, its revenue grew by 21.4 percent YoY and 5.5 per cent QoQ. Operating margin at 20.1 percent declined 3.6 per cent YoY and 1.4 percent QoQ.

Salil Parekh, MD and CEO, Infosys says, “Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organization, our industry-leading digital capabilities and continued client relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition.”

Nilanjan Roy, CFO, Infosys says, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations.”

According to the company, YoY growth was in double digits across all business segments in constant currency terms. Digital accounted for 61.0 per cent of overall revenues, growing at 37.5 per cent in constant currency. Q1 deal wins stood at $1.7 billion vs $2.3 billion QoQ.

Roy says, “The Company’s continued high focus on cash led to strong free cash flow generation to net profit conversion at 95.2 percent and improvement in ROE to 31 per cent. The total free cash flow during the June quarter stood at Rs. 5,106 crore.”