Home / Companies / Company Results /  Infosys Q3 results: Net profit up 23.5%, beats estimates

NEW DELHI : Beating estimates, IT major Infosys Ltd today reported that its third quarter net profit rose 23.5% year-on-year to 4,457 crore. Its revenue went up by 7.9% at 23,092 crore. Infosys has also revised upwards FY20 revenue outlook to 10-10.5% in constant currency. On a QoQ basis, Infosys's profit grew by of 10.9%.

In the year-ago period, Infosys had posted a net profit of 3,610 crore. Analysts on average had expected the Bengaluru-headquartered company to earn 4,206 crore in Q3, according to Refinitiv data.

Infosys added 84 new clients added in the December quarter. In dollar terms its revenue stood at $3,243 million, growing YoY at 8.6% and 9.5% in constant currency terms.

Infosys CEO and MD Salil Parekh said the Q3 results further underscore that the company remains steadfast in its journey of sustained client relevance and deepening engagement with them, as they partner with us in navigating their next in the digital transformation era. “For us, this has translated into double digit growth year-to-date, leading to an increase in revenue guidance, accompanied by expanding operating margins," he said.

Infosys COO Pravin Rao said large deal wins continue to be robust with growth of 56% so far this year. "We had a further reduction in attrition, demonstrating the results of our continued efforts towards strengthening employee engagement and value proposition." He said that the overall performance during the quarter was satisfactory on multiple counts – broad-based growth, steady increase in client metrics and healthy large deal wins.

Its total headcount stood at 2,43,454 at the end of December 2019 with an addition of 6,968 people. The attrition rate was at 19.6%.

Infosys announced its results after market hours. The company's shares gained 1.47% to close at 738.25 on the BSE.

Key highlights of Infosys results:

- Q3 20 revenues grew year-on-year by 8.6% in USD; 9.5% in constant currency

- Q3 20 revenues grew sequentially by 1.0% in USD and in constant currency

- Q3 20 Digital revenues at $1,318 million (40.6% of total revenues), year-on-year growth of 40.8% and sequential growth of 6.8% in constant currency

- Q3 20 operating margin at 21.9%, 0.2% improvement over Q2 20

- Year-to-date revenues grew by 11.1% in constant currency

- Year-to-date operating margin at 21.4%, within the margin guidance for the year

- Increased FY 20 revenue guidance; revised guidance is 10.0%-10.5% in constant currency

- Maintained FY 20 operating margin guidance range of 21%-23%

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