Infosys Q3 net profit vaults 16.6% to Rs5,197 cr, revenue grows 6.6%

21 Jan 2021


Infosys, India’s second-largest IT services provider, and a global leader in next-generation digital services and consulting, has reported its highest sequential growth in eight years, with net profit growing 16.6 per cent to Rs5,197 crore in the October-December quarter. 

Bengaluru-based IT major said its revenue grew 6.6 per cent year-on-year to Rs25,927 crore with digital revenues growing by 31.3 per cent and overall digital revenue crossing more than half of total revenues.
On a sequential basis, revenues grew 5.3 per cent in constant currency terms in  Q3 of fiscal 2020-21- the highest in 8 years.  
Infosys also reported large deal TCV, which was at all time high of $7.13bn with 73 per cent being net new. Strong and steady operating margin at 25.4 per cent. 
Revenue and margin guidance band increased to 4.5-5.0 per cent and 24.0-24.5 per cent, respectively, on the back of continued strong performance.
“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. The commitment and skills of our employees to support and drive the digital journey of clients are matters of great pride for me,” said Salil Parekh, CEO and MD. 
“With the intense focus on client needs and the comprehensive foundation built on differentiated capabilities, I remain confident about the future,” he added.
Infosys reported continued strong Q3 free cash flow at Rs5,683 crore - an year-on-year growth of 19.4 per cent. 
For the first nine months of the fiscal, Infosys said revenues grew 9.8 per cent to Rs74,161 crore, while operating profit jumped 25.9 per cent to Rs18,182 crore. Basic EPS grew 16.9 per cent to Rs33.65. 
Employee attrition for IT services declined to 10 per cent from 15.8 per cent in Q3. 
In Q3, Infosys further enhanced its digital investments in Infosys Cobalt - the cloud services, platforms and solutions portfolio launched last quarter. The company expanded the Infosys Cobalt portfolio by unveiling Infosys Modernisation Suite to help enterprises modernise their legacy systems and Infosys Live Enterprise Application Management Platform to deliver cloud-powered, managed services for IT operations. 
Infosys said it has reached a significant milestone in its ESG journey by becoming carbon neutral in 2020, thirty years ahead of 2050, the timeline set by the Paris Agreement. Infosys reiterated its commitment to environment, social and governance causes by announcing its ESG 2030 vision and ambitions.
“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, COO. 
“This outstanding performance has been made possible by reimagining Infosys, over the last three years, as a live enterprise with fully transformed digital infrastructure – Infosys Lex for learning, InfyMe for employee engagement, Infosys Meridian for collaboration, and Infosys DevSecOps platform to empower application teams to rapidly build and deploy new features. These highly differentiated systems and processes, redesigned for a digital-first world, are built on a strong foundation of robust connectivity to customer networks and fully secured personal devices,” he added
Infosys formed a strategic partnership with Daimler AG, one of the world’s most successful automotive companies, to support a technology-driven IT infrastructure transformation. 
“Software becomes modular and IT infrastructure becomes big. Daimler will take three steps at once to transform its IT infrastructure: consolidation, scaling and modernisation. We need to think infrastructure beyond the size of our company. With Infosys we found a partner to scale, to innovate and to speed up,” Jan Brecht, chief information officer, Daimler and Mercedes-Benz, said.
Infosys was also selected by El Paso Water, a municipal utility in El Paso, Texas, to transform its legacy customer information systems (CIS) with Oracle Utilities Customer to Meter (C2M), besides other major deals.

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