Earnings update: Infosys revenue up 20%, Wipro net income jumps 18%

Highlights

  • Infosys Limited ADR (NYSE: INFY) posted revenue of US$4 billion, a 20.7% increase YoY, and earning per share diluted of US$0.17, reflecting growth of 13% YoY.

  • Wipro Limited (NYSE: WIT) earned gross revenue of US$2.7 billion, a 30.1% increase YoY, and net income of US$395.2 million, an 18.9% YoY growth.

  • The two Indian companies’ total number of employees is more than 500,000. 

The Infosys Limited (NYSE: INFY) stock was up 5.58%, and Wipro Limited (NYSE: WIT) stock rose 6.28% in premarket after reporting solid quarterly results on Wednesday. 

The INFY stock traded at US$23.10, and WIT stock traded at US$9.48 at 8:03 am ET.

Here is a snapshot of their quarterly results. 

Infosys Limited 

Infosys posted revenue of US$4 billion, an increase of 20.7% YoY in the September quarter of 2021 compared to US$3.31 billion in the same quarter of the previous year. 

Its digital revenue contributed 56.1% of the total revenue, including financial services, retail, communication, energy, utilities, manufacturing, hi-tech, life sciences, and others. 

Its operating margin was 23.6% at US$941 million, down 1.8% YoY. The earning per share basic and diluted was US$0.17, up 13% YoY, compared to US$0.15 in the same quarter of 2020. 

Its total cash and cash equivalents were US$2.4 billion as of September 30, 2021.  

The free cash flow was US$712 million, 5.6% growth YoY, and conversion at 97.1% of net profit. The company also said that it increased college graduate hirings to 45,000 annually. 

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Infosys has revised its revenue guidance to 16.5%-17.5% and margin guidance to 22%-24% for FY22. Infosys has a market cap of US$91.59 billion. 

The P/E ratio is 33.66, and the forward P/E for one year is 31.71. Its dividend yield is 1.56%, the annualized dividend is US$0.339, and the EPS is US$0.65. 

The Bengaluru-based technology company provides IT services through an offshore outsourcing model and generates around 60% of the revenue from North America. 

It has around 250,000 employees and has a presence in over 50 countries. 

The stock closed at US$21.88 on Oct 12 with a share volume of 14,046,800.  

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Quarterly Earnings of Infosys Limited (NYSE: INFY) and Wipro Limited (NYSE: WIT). 

Source - pixabay

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Wipro Limited  

Wipro’s gross revenue was US$2.7 billion, up 30.1% YoY. The IT Services segment revenue was US$2,580.0 million, up 29.5% YoY, and the IT Services operating margin was 17.8% for the September quarter. Wipro’s 55.6% of total revenue comes from offshore businesses.

Wipro’s net income was US$395.2 million, an increase of 18.9% YoY, and earnings per share (EPS) were US$0.071, a 23.8% increase YoY for the September quarter of 2021.

Banking, financial services, and insurance segments contributed 34.8%, consumer 17.3%, health 11.7%, energy, natural resources & utilities 12.3%, technology 12.2%, manufacturing – 6.7% and communication 5% of the revenue.

Wipro has revised its Q4 revenue outlook upward in the range of US$2,631 million and US$2,683 million from the IT services business.  

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Wipro’s current dividend yield is 0.14%, the annualized dividend is US$0.012, the P/E ratio is 31.86, and the forward P/E one year is 30.76. Its current market cap is US$48.7 billion, with an EPS of US$0.28. 

This Bengaluru, India-based IT company has around 221,360 employees. The company earns a major part of its revenue from overseas, mainly North America. It offers consulting services, managed services, cloud infrastructure, and business process outsourcing services.

On Oct 12, the stock closed at US$8.92 with a share volume of 2,322,502.

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Bottomline

The NYSE Consolidated Index gave a 13.20% return YTD. The dividend yield is 2.47%. In comparison, these two NYSE-listed tech companies outperformed the index. INFY stock rose 36%, and WIT stock gave a 57.88% return YTD. Infosys brought its IPO in 1991, and Wipro went public in 2000. However, past performance is not an assurance of future performance, and investors must exercise caution before investing in the stock market.

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