Infosys Q3 net profit up 13.4% at Rs6,586 cr

Information technology major Infosys on Thursday reported a consolidated net profit of Rs6,586 crore for the October-December 2022-23 quarter, a 13.4 per cent year-on-year increase and a sequential growth at 2.4 per cent from Rs5,809 crores (after minority interest) posted in the corresponding quarter of the previous financial year. 

Bengaluru-based Infosys also logged a 20 per cent year-on-year increase in consolidated revenue for fiscal third quarter at Rs38,318 crore. For the full fiscal Infosys raised revenue guidance to be 16-16.5 per cent higher against the previously projected 15-16 per cent increase. 
Operating margin for the quarter remained resilient at 21.5 per cent. FY23 operating margin guidance retained at 21-22 per cent.
Year-on-year growth was in double digits for most business segments and geographical regions in constant currency terms. 
Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion. Digital comprised 62.9 per cent of overall revenues and grew at 21.7 per cent in constant currency. 
“Year-on-year growth was in double digits for most business segments and geographical regions in constant currency terms,” Infosys said in a statement. 
Infosys CEO and MD Salil Parekh said that the company continues to gain market share as a trusted transformation and operational partner for clients, as reflected in the large deals momentum. 
“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,” he said. 
“As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness”, he added.
Attrition rate declined to 24.3 per cent in the December quarter, compared to 27.1 per cent in the previous quarter. The total number of employees stood at 3,46,845, with women employees comprising 39.4 per cent of the workforce. 
“Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters”, said Nilanjan Roy, chief financial officer. “Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term”, he added.
Infosys also said that during its ongoing opem market buyback programme, it has repurchased 31.3 million shares worth Rs4,790 crore or 51.5 per cent of the total authorisation of Rs9,300 crore, at an average price of approximately Rs1,531 per share, compared to the maximum buyback price of Rs1,850 per share.