Infosys beats estimates as Q3 net rises 16.6%

Bengaluru : Beating estimates, India's second largest IT services company Infosys on Wednesday reported a 16.6 per cent rise in consolidated net profit at Rs 5,197 crore for the third quarter ended December 2020. Gross revenue for the quarter rose 12.3 per cent YoY to Rs 25,927 crore. It was up 5.5 per cent on a sequential basis.

In constant currency terms, revenue growth was 6.6 per cent on year-on-year basis and 5.3 per cent on sequential basis, which was the highest in the eight years. In dollar terms, revenues were at $3.51 billion, which was 8.4 per cent higher than the same period last fiscal.

For the whole fiscal, the Bengaluru-headquartered firm increased its revenue growth guidance to 4.5-5 per cent in constant currency term. During the last quarter, the IT firm reported operating margin of 25.4 per cent, year-on-year improvement of 350 bps.

For the whole fiscal, the company increased its operating margin guidance to 24-24.5 per cent. Digital revenues grew by 31.3 per cent and overall digital revenue crossed more than half of total revenues during this period.

"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", said Salil Parekh, CEO and MD at Infosys.

For the quarter ended December, the IT firm signed large deals worth $7.13 billion out of which 73 per cent were new deals. The company bagged a deal worth around $3.2 billion with automotive major Daimler AG, which is the highest contract ever for the IT services firm.

"The resilience of Infosys has been severely tested over the past several quarters and I am delighted with our response marked by strong revenue performance, large deal wins, healthy operating metrics and continued low attrition", said Pravin Rao, Chief Operating Officer at Infosys.

From the various segments, the BFSI vertical representing 33.1 per cent of the revenues grew 12 per cent on year-on-year basis.

Hi-tech segment grew 17.4 per cent, while life sciences grew 11 per cent year-on-year basis. While the North America contributed 61.6 per cent revenues to Infosys, Europe contributed 24 per cent from the IT company.

Voluntary attrition of the company dropped to 10 per cent for the quarter from 15.8 per cent earlier. The utilisation rate of the IT firm improved to 82.3 per cent during the quarter from 80.6 per cent reported in the previous quarter.