IT major Infosys reported a 23 per cent year-on-year rise in net profit for the quarter ended December 31, 2019. The company's net profit rose to Rs 4,466 crore in the third quarter of current fiscal compared to Rs 3,610 crore in the corresponding quarter of last fiscal.
Infosys' revenue rose 7.95 per cent to Rs 23,092 crore in Q3 FY20, from Rs 21,400 crore in Q3 FY19. The IT firm revised FY20 revenue outlook upwards to 10 to 10.5 per cent in constant currency. The operating margin guidance was maintained in the range of 21 to 23 per cent.
The company reported operating profit of Rs 5,064 crore during the December quarter of current fiscal, an increase of 4.8 per cent on annual basis from Rs 4,830 crore in the same quarter last fical. Operating margin improved 20 basis points in Q3 FY20 to 21.9 per cent, in comparison to that in Q2 FY20.
Infosys CEO and MD Salil Parekh said, "Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them, as they partner with us in navigating their next in the digital transformation era. For us, this has translated into double digit growth year-to-date, leading to an increase in revenue guidance, accompanied by expanding operating margins."
"Overall performance during the quarter was satisfactory on multiple counts - broad-based growth, steady increase in client metrics and healthy large deal wins. Large deal wins
continue to be robust with growth of 56% so far this year. We had a further reduction in attrition, demonstrating the results of our continued efforts towards strengthening employee engagement and value proposition," said Infosys COO Pravin Rao.
On whistleblower allegations levelled against the company's CEO Salil Parekh and CFO Nilanjan Roy, Infosys clarified that the audit committee of its board did not find any evidence of financial impropriety or executive misconduct.
The earnings were announced after market hours. Infosys share price closed 1.47 per cent or Rs 10.70 points higher at Rs 738.25 on BSE.