Infosys Q3 net falls 30% YoY to Rs 3,609 cr; announces Rs 8,260 cr buyback

IT major Infosys on Friday reported a 29.6 per cent YoY fall in its net profit at Rs 3,609 crore for third quarter of FY19.
The company had posted net profit of Rs 5,129 crore in the corresponding quarter last year.

On sequential basis, PAT (profit after tax) fell 12.18 per cent. 

The company also announced special dividend of Rs 4 and fixed January 25, 2019 as record date for it and January 28, 2019 as its payment date.  

In line with expectations, the company's board approved buyback of shares. The company said it would buyback 103,250,000 equity shares, which accounts for 2.36 per cent of the paid-up capital of the company as of December 31, 2018 (on a standalone basis). The buyback size stands at Rs 8,260 crore at a maximum price of Rs 800 per share. 

Revenues for the quarter grew 20.3 per cent YoY in rupee terms. In constant currency terms, revenue grew 10.1 per cent. 

On sequential basis, Q3 revenues grew 3.8 per cent in rupee terms and 2.7 per cent in constant currency terms. Digital revenues came in at $942 million (31.5 per cent of total revenues), up 33.1 per cent YoY growth and sequential growth of 5 per cent in constant currency terms, the company said in its press release. 

“With increased client relevance, we saw double digit (10.1%) year-on-year growth in Q3 on a constant currency basis”, said Salil Parekh, CEO and MD. “We also had another strong quarter in our digital business with 33.1% growth and large deals at $1.57 billion which gives us confidence entering 2019”, he added.

The company revised FY19 revenue guidance in constant currency upward to 8.5 per cent-9 per cent, operating margin guidance has been retained at 22 per cent-24 per cent.