Infosys on Tuesday reported a mixed set of numbers for the September quarter when net profits came in line with expectations but margins disappointed with the country’s second largest software services firm unable to capitalise on the rupee depreciation during the period.

Infosys reported a net profit of Rs 4,110 crore during the period — a growth of 10.3 per cent over the same period last year.

On a sequential basis, the net profit showed a rise of almost 14 per cent. Analysts had expected the Bangalore-based firm to report profits between Rs 4,000-4,100 crore.

Infosys maintained its revenue guidance of 6-8 per cent for the year in constant currency terms. Though it retained the operating margin guidance at 22-24 per cent, operating margins during the second quarter came in at 23.7 per cent, which was a big disappointment.

The Street had expected the company to post operating margins of over 24 per cent because of tailwinds from the rupee, which had depreciated close to 4 per cent during the quarter.

However, there was good news on other fronts. While large deal wins crossed $2 billion, Infosys said digital revenues at $905 million, which constituted 31 per cent of total revenues, showed a year-on-year growth of 33.5 per cent and sequential rise of 13.5 per cent in constant currency terms.

Moreover, revenues in dollar terms, which came in at $2921 million beat expectations as it showed a rise of 3.2 per cent on a sequential basis and 7.1 per cent compared with the same period last year.

“We are delighted with our broad-based growth across all business segments and geographies during the quarter. This is a testimony to our strong client relationships, digital-led full service capabilities, and intense focus on the needs of our clients. Large deal wins at over $2 billion during the quarter demonstrate our increased client relevance and also give us better growth visibility for the near-term,’’ Salil Parekh, CEO and MD, of Infosys said.

In terms of revenues by business segments, Infosys witnessed positive contribution from various verticals. While financial services showed a growth of 5.8 per cent growth in constant currency terms, retail topped by posting a rise of 5.9 per cent. Some of the other verticals that showed good growth included manufacturing and high-tech at

4.8 per cent and 3.6 per cent, respectively. North America, which contributes a little over 60 per cent of its revenues, showed a sequential rise of 3.8 per cent, while Europe showed a growth of 4 per cent.

Revenues in rupee terms stood at Rs 20,609 crore, which represented a growth of 17.3 per cent over the corresponding period last year.

“We believe that improved growth at cost of lower profitability would lead to structural de-rating in the stock and thus we maintain our negative view on the stock post the second quarter earnings,’’ Emkay Global Financial Services said.

Bansal dues

Infosys on Tuesday said it will comply with the arbitration award asking the company to pay Rs 12.17 crore and interest to its former chief financial officer Rajiv Bansal.

In September, the Arbitral Tribunal of Justice (retd) R.V. Raveendran had communicated the decision with regard to the dispute between Infosys and Bansal, Infosys said in a regulatory filing.

An anonymous whistleblower had written to market regulator Sebi in September that Infosys should pay Bansal his severance amount by clawing back the remuneration the company paid to the members of then Infosys board led by former chairman R. Seshasayee.