Infosys corrects after Q3 results

On a consolidated basis, the IT major's net profit jumped 16.6% to Rs 5,197 crore on a 12.3% rise in revenues to Rs 25,927 crore in Q3 December 2020 (Q3 FY21) over Q3 December 2019 (Q3 FY20).

Shares of the IT major were down 3.21% at Rs 1,343.15. It has soared 162.79% from its 52-week low of Rs 511.10 hit on 19 March 2020.

Sequentially, Infosys net profit rose 7.3% and revenue increased 5.5% in Q3 FY21 over Q2 September 2020 (Q2 FY21). Profit before tax (PBT) stood at Rs 7,151 crore in Q3 FY21, gaining 5.9% over Rs 6,750 crore in Q2 FY21. Income tax expense rose 2.3% to Rs 1,936 crore in Q3 FY21 over Q2 FY21. The result was announced post market hours on Wednesday (13 January 2021).

Operating profit rose 5.8% to 6,589 crore in Q3 FY21 over Q2 FY21. Operating margin stood at 25.4% in Q3 FY21, higher than 25.3% in Q2 FY21 and 21.9% in Q3 FY20.

The company has revised FY21 growth guidance upward to 4.5% to 5% in constant currency term. Operating margin for FY21 is revised upward in the range of 24% to 24.5%.

Infosys has delivered its highest Q3 sequential growth of 5.3% in eight years in constant currency. On a year-on-year (Y-o-Y) basis, revenues grew by 6.6%, digital revenues grew by 31.3% and overall digital revenue crossed more than half of total revenues. Large deal TCV was at an all time high of $7.13 billion with 73% being net new.

Commenting on the Q3 results, Salil Parekh, the chief executive officer (CEO) and manging director (MD) of Infosys, said that: "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. With the intense focus on client needs and the comprehensive foundation built on differentiated capabilities, I remain confident about the future."

Consolidated cash and investments were at Rs 33,157 crore as on 31 December 2020 compared with Rs 24,434 crore as on 31 December 2019 and Rs 33,601 crore as on 30 September 2020.

The attrition rate for Q3 FY21 declined to 10% as against 15.8% in Q3 FY20. Infosys had 2,49,312 employees as of 31 December 2020 as against 2,43,454 in the same period last year.

Infosys is a global leader in next-generation digital services and consulting.

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