Infosys announced their first-quarter results of FY22. The company recorded its fastest growth in the first quarter of a financial year in a decade. The country’s second-largest IT services company clocked a 22.7% y-o-y rise in the Q1 net profit from Rs 4,233 crore to Rs 5,195 crore.
The company’s revenue saw a growth of 6% over the previous quarter on account of a boom in the digital services sector in the pandemic era. The digital revenue now accounts for 53.9% of Infosys’ business compared with 44.5% in Q1 FY21. The company now estimates its full-year revenue growth in constant currency terms to come in at 14-16%.
The Infosys stock lifted by 0.20% to Rs 1,579.85 intra-day on Thursday, July 15, after its Q1 performance. In fact, a slew of IT stocks surged on Dalal Street amid a strong market sentiment led by Infosys results.
The company seems to have had a stellar quarterly performance with barely any mentionable negatives.
Company CEO and MD Salil Parikh lauded Infosys employees for a landmark performance in a decade and reiterated the company’s stance of its commitment to the client. Mr. Parikh expresses confidence in the company’s performance with Infosys now revising the revenue growth guidance to 14-16% from the previous 12-14%. Infosys COO Pravin Rao highlighted the rising demand for digital talent announcing the expansion of the company’s hiring program.
The company’s total liabilities jumped from Rs 31,604 crore in the last quarter to Rs 37,173.
Despite the net profits falling short of estimates, analysts are positive after the revenue guidance was hiked. On the back of increased demand for digital platforms and services, analysts remain bullish after the Q1 results of the company. Analysts express confidence in the company’s digital capability and it remains a top pick in the IT sector.