The numbers of Infosys were much better than street expectations and that has gone down well with the domestic stock price as well as the ADR prices. Infosys reported 11.4% rise in net profits at Rs.4233 crore in a tough Jun-20 quarter. However, sequential numbers were down 1.45%. Revenues were up 8.5% at Rs.23,665 crore.

During the quarter, Infosys signed deals worth $1.75 billion. After a break, the company is back with its guidance. FY21 revenue growth is expected at 0-2% while OPMs for FY21 is estimated in the range of 21-23%. Infosys reported digital revenues at 45% of overall revenues. The big news was the sharp improvement in free cash flows at Rs.5524 crore.

The sharp spike in operating cash flows was achieved by a mix of cost optimization and better utilization. Even the voluntary attrition declined to 11.7% from 20.2%. The overall top line growth must be looked at in the context of the fact that tech spending this year is likely to be 8% lower as per Gartner estimates.