Infosys Q3 Results: Net Profit Jumps 13 Per Cent To Rs 6,586 Crore, Beats Estimates

Infosys also announced the appointment of Govind Iyer as an independent director of the company, effective January 12, 2023

Indian IT major Infosys on Thursday clocked 13.4 per cent rise in its consolidated net profit for the quarter ended December 2022 (Q3) at Rs 6,586 crore. The country's second largest IT firm had posted a net profit of Rs 5,809 crore in the same quarter last year.

Infosys’ consolidated revenue from operations increased 20.2 per cent to Rs 38,318 crore against Rs 31,867 crore in the corresponding quarter last year, Infosys said in an exchange filing.

The reported numbers beat estimates. According to a poll of brokerages, consolidated revenue was expected to be Rs 37,613 crore, registering 18 per cent YoY growth, while consolidated profit after tax (PAT) was estimated to increase 10.5 per cent YoY to Rs 6,418 crore.

In constant currency terms, YoY revenue growth was at 13.7 per cent and sequential growth at 2.4 per cent. Digital revenue comprised 62.9 per cent of overall revenues and grew at 21.7 per cent in constant currency.

The company’s YoY growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal total contract value for the quarter was the strongest in the last eight quarters at $3.3 billion, the IT firm added. Operating margin of the company, however, came down to 21.5 per cent from 23.5 per cent year ago. It was flat sequentially.

Salil Parekh, CEO and MD of the Banaglore-headquartered company, said, “Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees,” while adding, “As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients.”

Nilanjan Roy, Infosys’ chief financial officer, said, “Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters. Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term.”

Shares of the IT firm closed at Rs 1,480.55 apiece, up 0.62 per cent on the BSE on Thursday.

Meanwhile, Infosys also announced the appointment of Govind Iyer as an independent director of the company, effective January 12, 2023. This appointment is based on recommendation of the Nomination and Remuneration Committee of the Infosys Board, and is for a period of five years, subject to the approval of shareholders.

Iyer retired as a Partner at Egon Zehnder (a Global leadership advisory Firm). Prior to joining Egon Zehnder, Govind worked at Procter & Gamble, Coca-Cola, and Heinz. Govind has served on the Wharton Executive Education Advisory Board and is an active University of Pennsylvania alumnus. He has served on the Advisory Board of Asian Venture Philanthropy Network (AVPN).