Infosys posts in line Q2 profit

Software services company Infosys (INFY) reported a marginal rise in earnings for the second quarter helped by higher revenue and the management of its costs and expenses. The bottom line came in line with analysts’ expectations, while revenue missed consensus estimates.

Net profit for the quarter rose by 0.5% to $581 million and earnings came in line with last year at $0.13 per share.

Revenue grew 7.1% to $2.92 billion, driven by growth in the company’s digital business offerings and higher deal wins in Q2. On a geographic basis, Europe and Rest of World posted marginal growth in revenue, while North America and India registered declines.

The company also said its deal wins crossed $2 billion, of which over 32% were from Financial Services. Digital services grew double digits sequentially, while growth in top clients was also robust.

For the fiscal year 2019, Infosys retained its revenue guidance in constant currency at 6% to 8% and operating margin guidance was retained at 22% to 24%.

The Bengaluru, India-based software giant said its board declared an interim dividend of about $0.10 per American Depository Share. The number of active clients rose to 1,222 at the end of the quarter from 1,173 the year-ago period.

On September 7, Infosys subsidiary Infosys Consulting agreed to buy 60% stake in Trusted Source, an IT subsidiary of Singapore-based Temasek Management Services for about $9 million. On October 11, Infosys Consulting purchased 100% of voting interests in Finnish-based consulting firm Fluido Oy for about $75 million.

Post the earnings announcement, Infosys stock gained more than 3% in NYSE on Tuesday’s regular session, while the stock had a stellar run during the past one year, jumping more than 38%.

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