Infosys Q3 profit rises 17% YoY to Rs 5,197 cr; ups margin guidance to 5%

The IT major delivered its highest Q3 sequential growth of 5.3 per cent in 8 years in constant currency

Infosys on Wednesday reported a 16.60 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 5,197 crore for the third quarter of the financial year 2021 (Q3FY21). The firm had posted a net profit of Rs 4,457 crore in the same period last year.

On a sequential basis, the profit rose 7.3 per cent per cent from Rs 4,845 crore posted for the September 2020 quarter.

The company's revenue came in at Rs 25,927 crore, up 12.27 per cent YoY and 5.52 per cent QoQ. In constant currency terms, the revenue grew 5.3 per cent which was its its highest Q3 sequential growth in 8 years. Meanwhile, on YoY basis, the figure was up 6.6 per cent. In dollar terms, the revenue for the quarter under review grew 8.4 per cent YoY and 6.2 per cent QoQ to $3,516 million.
 

The firm said digital revenues crossed 50 per cent of the total revenue. For the year, digital revenues in cc terms are up 31.3 per cent.

The results were largely in line with analysts' expectations. Phillip Capital and ICICI Direct had project around 15-16 per cent YoY (6.5 per cent QoQ and 5.7 per cent QoQ, respectively) jump in net profit. Meanwhile, analysts at Antique Stock Broking had projected a 10.1 per cent YoY (3.5 per cent QoQ) jump in revenue to Rs 25,420.3 crore. READ HERE

Meanwhile, the operating profit for the quarter stood at Rs 6,589 crore, up 30.1 YoY, against Rs 5,064 crore posted in Q3FY20. The figure increased 5.8 per cent sequentially to Rs 6,228 crore.

The operating margin for the December quarter came in at 25.4 per cent as against 21.9 per cent posted in the same quarter last year and 25.3 per cent reported in the preceding quarter. 

It also raised its FY21 revenue guidance to 4.5-5 per cent in constant currency while FY21 operating margin guidance has been revised upward to 24-24.5 per cent on the back of continued strong performance.

"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", said Salil Parekh, CEO and MD.

Large deal TCV was at all time high of $7.13 billion with 73 per cent being net new.

The firm said Q3 voluntary attrition for IT services declined to 10 per cent from 15.8 per cent at the end of third quarter last year

Shares of the firm scaled 52-week high of Rs 1,392.70 in intraday trade today only to settle at Rs 1387.70, up 1.16 per cent, on the BSE.