Infosys on January 12 reported a consolidated net profit of Rs 5,809 crore, up by 12 per cent year-on-year for the quarter ended in December. The information technology giant posted a net profit of Rs 5,197 crore for the same quarter last year.
Revenue from operations increased 23 per cent to Rs 31,867 crore for the period under review. The revenue stood at Rs 25,927 crore from the same period a year ago. The strong growth during the December quarter was driven by robust deals and digital transformation across verticals, said the IT behemoth in the regulatory filing.
Infosys increased its revenue guidance to 19.5 per cent -20 per cent for FY22. Earlier it had estimated growth at 16.5-17.5 per cent in constant currency.
Infosys said it delivered a strong Q3 performance with sequential growth in a seasonally weak quarter. Large deal wins accelerated with total contract value (TCV) of $2.53 billion in Q3. The operating margin during the quarter declined 1.9 per cent year-on-year to 23.5 per cent. It Free cash flow stood at $719 million, down 6.9 per cent YoY. Infosys’ digital revenues was 58.5 per cent of total revenues.
“Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance to 19.5 per cent-20.0 per cent for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, chief executive officer and managing director, Infosys.
Infosys clocked over $2 billion in deals in the December quarter. CEO suggested that deals pipeline and overall demand environment for IT sector is so strong that it provides the company confidence beyond March.
“Despite the cost escalations driven primarily by supply side challenges, we delivered another quarter of healthy margins, with improved cost optimisation, continued operating leverage and a stable pricing environment”, said Nilanjan Roy, chief financial officer.
Infosys had decided to hire over 55,000 this fiscal to meet rising attrition rate and supply chain demand. “We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions”, Nilanjan Roy added.
However, the company reported a high attrition rate of over 25 percent at the end of the December quarter.
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