Business

‘Infosys’ focus shifts back to business

Infosys’ dollar revenue growth of 2.9 percent quarter-on-quarter (QoQ) was slightly lower compared to expectations, and that of its closest peer TCS (3.2 percent). Realizations for the quarter have slightly improved on sequential basis. However, realisations for the first half of the year have remained essentially stable year-on-year.

The operating performance has been upbeat with operating profit being 4 percent ahead of the consensus expectations. Operating profit margin of 24.2 percent was tad higher than the margin in previous quarter due to better pricing, onsite mix and utilization being partially offset by higher compensation.

High-margin “New Services” contributed 9.4 percent of the revenue in the quarter compared to 8.3 percent in Q1 2018. Including “New software”, high margin digital solutions contributed 11 percent to the revenue.

It is noteworthy that, New Services, as recently categorized by the company, includes Cloud Ecosystem, Big Data and Analytics, API and Micro services, Data and Mainframe Modernization, Cyber Security, IoT Engineering Services. Management mentioned good traction for Infrastrucure services and Enterprise cloud services.

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