Infosys beats market estimates; profit up 12%, raises guidance

Venkatesha Babu | | Updated on: Jan 12, 2022
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It raised guidance to 19.5-20 per cent growth compared to the 16.5-17.5 per cent growth it had indicated earlier

Infosys, the country's second largest software services exporter reported $4.25 billion in revenue for the third quarter which ended on December 31, 2021. This is a sequential growth of 7 per cent quarter-on-quarter (QoQ) and 21.5 per cent year-on-year (YoY).

The company’s net profit grew by 12 per cent to ₹5,809 crore, a jump of 12 percent compared to ₹5,197 crore in the same quarter of the previous fiscal. Both revenue and profit growth were ahead of market and analyst estimates, indicating robust demand for its services.

The total revenue in rupee terms grew by 22.9 per cent (YoY) to ₹31,867 crore and 7.7 per cent quarter on quarter (QoQ) for the just concluded third quarter. The company said that digital revenues accounted for 58.5 per cent of the total revenues (YoY) in constant currency terms, a growth of 42.6 per cent from the previous year.

Infosys also raised its FY22 revenue guidance to 19.5-20 per cent growth compared to the 16.5-17.5 per cent growth it had indicated earlier.

Commenting on the good set of numbers turned in by the company Salil Parekh, CEO and MD of Infosys said, "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 19.5-20 per cent for FY22.”

Infosys’ large deal wins accelerated with total contract value (TCV) of $2.53 billion in Q3. The company said that talent strategy continued to be a key focus area marked by efforts to further strengthen employee skilling and well-being while nurturing our workforce to fulfil client requirements.

Nilanjan Roy, Chief Financial Officer, said, “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”.

While Infosys added 42,755 employees in the first nine months of the current fiscal taking its total employee strength to 2,92,067, voluntary attrition at 25.5 percent in the third quarter was more than double of the 11 percent seen in the same quarter of the previous year.

Infosys released numbers after trading hours. Eearlier in the day its scrip on National Stock Exchange (NSE) closed 1.37 per cent higher at ₹1,875 per share.

Published on January 12, 2022

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