India Finance News

Infosys Q3: Net profit surges 13% to Rs 6,586 crore, beats estimates; deal wins at $3.3 bn – Moneycontrol

Infosys on January 12 reported 13.4 percent rise in its consolidated net profit for quarter ended December 2022 at Rs 6,586 crore. The country’s second largest IT firm had reported a net profit of Rs 5,809 crore in the same quarter last year.

Its consolidated revenue from operations increased 20.2 percent to Rs 38,318 crore against Rs 31,867 crore in the corresponding quarter last year, Infosys said in an exchange filing.

The reported numbers beat estimates. According to a poll of brokerages, consolidated revenue was expected to be Rs 37,613 crore, registering 18 percent year-on-year (YoY) growth, while consolidated profit after tax (PAT) was estimated to increase 10.5 percent YoY to Rs 6,418 crore.

In constant currency terms, YoY revenue growth was at 13.7 percent and sequential growth at 2.4 percent. Digital revenue comprised 62.9 percent of overall revenues and grew at 21.7 percent in constant currency.

Year on year growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal total contract value for the quarter was the strongest in the last eight quarters at $3.3 billion, the IT firm added. Operating margin of the company, however, came down to 21.5 percent from 23.5 percent year ago. It was flat sequentially.

“Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters,” said Nilanjan Roy, Chief Financial Officer, Infosys. “Attrition

reduced meaningfully during the quarter and is expected to decline further in the near-term.”

Last twelve month IT services voluntary attrition rate – measuring the percentage of employees leaving the company during the period- declined to 24.3 percent. It was 27.1 percent in the previous quarter and 25.5 percent in the same quarter last year.

Infosys revised FY23 guidance revised higher to 16-16.5 percent. It retained FY23 operating margin guidance at 21-22 percent.

“Our revenue growth was strong in the quarter, with both digital business and core services growing,” said Salil Parekh, CEO and MD, Infosys. “As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients

look at consolidating vendors.”

The company informed that during its ongoing buyback program via open market route has bought back 31.3 million shares worth Rs 4,790 crore or 51.5 percent of total authorization of Rs 9,300 crore at an average price of approx. Rs 1,531 per share compared to maximum Buyback Price of Rs 1,850per share.

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