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Wednesday 13 October 2021

Infosys accelerates

LogoHaving been quick out of the blocks at the start of the current financial year (see here), Infosys lengthened its stride during the second quarter. Revenue for the three months ended 30th September increased at constant currency by a hefty 19.4% yoy and 6.3% sequentially to just shy of $4bn. The rapid top line expansion did come at a cost to the Q222 operating margin, which eased back by 180 bps yoy to a still very respectable 23.6%.

There was growth evident across all of Infosys’s vertical and geographic businesses. In terms in industry segments, there were particularly strong performances in the Manufacturing, Life Sciences and Financial Services sectors. These three units, which collectively account for around half of the firm’s global turnover, saw their sales increase yoy by 42.5%, 26.1% and 20.5% respectively. Second quarter revenues from the North American region rose by 23.1%, while those in Europe were up by 19.6%.

The only demerit in an otherwise impressive set of Q222 numbers was the jump in voluntary staff attrition. This increased sequentially from 13.8% to a concerning 20.1%.  This significant rise in staff churn has not, however, diminished Infosys’s confidence in the business outlook. For the second quarter in a row, the firm has raised full year revenue guidance and now anticipates growth of between 16.5% and 17.5%. It would not be surprising is this range was revised upwards again come the publication of the third quarter results.

Posted by: Duncan Aitchison at 20:33

Tags: results   offshore   systemsintegration  

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