Infosys Q3 results: Net profit up 11.8% YoY to Rs 5,809 cr, revenue up 22.9%

IT major Infosys on Wednesday reported a 11.8 per cent year-on-year (YoY) rise in its consolidated net profit for October-December quarter at Rs 5,809 crore. On a quarter-on-quarter (Q0Q) basis, net profit was 7.1 per cent higher than Rs 5,421 crore reported in the preceding September quarter.
 
The company's revenue grew 22.9 per cent YoY to Rs 31,867 crore during the quarter under review. On a QoQ basis, it was up 7.7 per cent. The operating margin contracted to 23.5 per cent during October-December 2021 as against 25.4 per cent in the year-ago quarter and 23.6 per cent in the preceding July-September period.
 
The company revised upwards its revenue guidance for FY22 to 19.5-20 per cent.
 
Infosys said its growth remained broad-based and deal momentum was robust, with digital transformation rapidly scaling across verticals and regions. Large deal wins accelerated with total contract value (TCV) of $2.53 billion during the quarter.
 
"Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance to 19.5-20 per cent for FY22," Infosys MD and CEO Salil Parekh said.

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He expects the healthy technology spend to continue, with large enterprises progressing on their digital transformations.
 
The company's CFO Nilanjan Roy said that despite the cost escalations, driven primarily by supply side challenges, Infosys was able to deliver another quarter of healthy margins, with improved cost optimisation, continued operating leverage and a stable pricing environment.
 
Infosys' total employee count stood at 2,92,067 as of December 31, 2021 as against 2,79,617 on September 30, 2021, while voluntary attrition was at 25.5 per cent compared to 20.1 per cent in September quarter.
 
"We continue to prioritise investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions," Roy said.
 
Shares of the company closed 1.16 per cent higher at Rs 1,877.60 on the BSE on Wednesday.

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