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Infosys Q3 results: Profit rises 17% to Rs 5,197 crore, raises FY21 revenue guidance

BusinessToday.In     January 13, 2021

Infosys, the country's second largest software exporter, on Wednesday reported 16.6 per cent growth in consolidated net profit at Rs 5,197 crore for the third quarter ended December 31, 2020, compared to Rs 4,457 crore in the same quarter last year, driven by record large deals and acquisitions.

Consolidated revenue of the company rose by 12.3 per cent to Rs 25,927 crore in Q3 FY21 as compared to Rs 23,092 crore in the December quarter of the last fiscal, Infosys said in a filing to the Bombay Stock Exchange.

The Bengaluru-based IT major has raised revenue guidance for the current fiscal to 4.5-5 per cent in constant currency, while it hiked full year operating margin guidance to 24-24.5 per cent.

"Infosys delivered its highest Q3 sequential growth of 5.3 per cent in 8 years in constant currency. On a year on year basis, revenues grew by 6.6 per cent, digital revenues grew by 31.3 per cent and overall digital revenue crossed more than half of total revenues. Large deal TCV was at all time high of $7.13 billion with 73 per cent being net new," the IT major said in a filing to the BSE.

In terms of dollar, Infosys' revenue stood at $3,516 million, registering a growth of 8.4 per cent YoY and 6.2 per cent QoQ. Operating profit was at $893 million, up 25.6 per cent YoY and 6.4 per cent QoQ.

Commenting on the Q3 earnings, CEO Salil Parekh said: "The Infosys team has delivered another quarter of excellent results. Execution of client relevant strategy focused on digital transformation continues to drive superior growth, well ahead of the industry. The scale of new client partnerships with leading global companies such as Vanguard, Daimler and Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys. The commitment and skills of our employees to support and drive the digital journey of clients are matters of great pride for me."

During the quarter under review, Infosys' active client base stood at 1,562, while it added 139 new clients during October-December period. The information technology services provider had 2,49,312 employees as of December 31, 2020, of which women employees accounts 38.3 per cent. Infosys's voluntary attrition rate declined to 10 per cent December quarter of 2020, from 15.8 per cent in the year ago quarter, while it stood at 7.8 per cent in September quarter of the current fiscal.

Ahead of Q3 results, shares of Infosys ended Wednesday's trade at Rs 1,387.70, up 1.16 per cent, against previous closing price of Rs 1,371.85 on the BSE.

Also Read: Wipro Q3 results: Net profit rises 21% to Rs 2,967 crore on strong order book


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