Corona crisis weighs on Infosys Financial Year 21 performance

New Delhi: The country's second-largest IT services player Infosys on Monday reported a 6.3 per cent rise in consolidated net profit to Rs 4,335 crore for March 2020 quarter, and said it is unable to provide revenue outlook for FY21 due to business uncertainty amid Covid-19 outbreak.

The company posted a net profit of Rs 4,078 crore in the year-ago period as per IFRS accounting norms, Infosys said. Its revenue grew 8 per cent to Rs 23,267 crore in the quarter under review from Rs 21,539 crore in the corresponding period last fiscal, it added.

"Considering the business uncertainty emanating from Covid-19, the company is unable to provide guidance on revenues and margins for FY21 at this stage. The company will provide guidance after visibility improves," the company said.

Infosys CEO and MD Salil Parekh said Infosys team has achieved 93 per cent remote working on Monday and ensuring consistent service delivery for clients in this rapidly changing environment.

"While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger," he added.

Infosys COO Pravin Rao said the impact caused by Covid-19 since last few weeks of March has led to 'significant displacement' in the operating model while severely testing business continuity plans of companies. Infosys FY20 net profit was up 8 per cent to Rs 16,639 crore, while revenue up 9.8 per cent to Rs 90,791 crore from last fiscal. The company has declared a final dividend of Rs 9.50 per share.

Meanwhile, the IT major said it also suspended promotions and salary increments in view of the ongoing Covid-19 pandemic which has infected over 17,000 people and claimed over 500 lives in the country so far. The company however said it would honour all new job offers.