Infosys: Firing on all cylinders
Infosys delivered robust numbers in the third quarter and revised its guidance for FY19 higher. The open market buyback of shares at a maximum of
₹800 a piece comes as the icing on the cake. On a year-on-year (Y-o-Y) basis, the company reported a double-digit growth of 10.1 per cent, on a constant currency basis in dollar terms, after a gap of 10 quarters. In the third quarter, the revenues rose 2.2 per cent sequentially in dollar terms (2.7 per cent in constant currency). Infosys’ operating margin of 22.6 per cent is healthy and in line with its preferred band of 22-24 per cent.
Revenue from digital offerings grew by a robust 33.1 per cent Y-o-Y and account for 31.5 per cent of the overall pie, up from 26 per cent in the same period last year. The financial services vertical, which accounts for 32.5 per cent of Infosys’ revenues, grew at a healthy 3 per cent sequentially, faster than the overall revenue rate. Manufacturing and energy and utilities segments grew at a faster clip.