Infosys Q1 net profit declines 3.3% from previous quarter

BENGALURU: Infosys on Friday reported a 3.3% decline in its net profit at Rs 3,483 crore in the quarter ended June 30, 2017 compared to Rs 3,603 crore in the previous quarter. On a year-on-year basis, the company saw a decline of 1.4% in its net profit, which stood at Rs 3,436 crore in the corresponding period in the previous year.

The IT major’s revenues also saw a decline from Rs 17,120 crore in the quarter ended March to Rs 17,078 crore in the quarter under review. However, year-on-year, it was an improvement of 1.8% from Rs 16,782 crore in June 2016.

Geography-wise, there was a jump in revenues from India at 3.6% compared with 2.7% in June 2016. On the other hand, revenues from North America fell to 61.1% from 62% and Europe fell to 22.4% from 23%, compared to last year.

Infosys saw an increased attrition rate (annualised consolidated), which went up from 17.1% the previous quarter in March to 21% in the quarter ended June 30, 2017. On yearly basis, too, attrition remained the same as the corresponding year-ago period. The management maintained attrition was seasonal and in the April-June quarter many employees moved on to pursue higher studies.

As for its capital allocation policy, Infosys would execute the policy as quickly as possible, the management stated. Since they were a globally listed company, the distribution mechanism to shareholders required multiple regulatory approvals.

 Infosys had announced capital allocation policy on April 13, 2017 with an identified sum of Rs 13,000 crore to be paid out to shareholders during 2017-2018.