The country's second largest information technology company, Infosys, on Thursday reported better than anticipated December quarter earnings on strong deal wins and raised its revenue guidance for current financial year.
The sharp up move in profit came on the back of strong large deal wins. The company won large deals worth $3.3 billion and December quarter was the best in the last eight quarters
The country's second largest information technology company, Infosys, on Thursday reported better than anticipated December quarter earnings on strong deal wins and raised its revenue guidance for current financial year.
Infosys reported net profit of Rs 6,586 crore, up 9 per cent sequentially from Rs 6,026 crore in the previous quarter and up 13 per cent annually from Rs 5,809 crore during the same quarter last year.
Analysts on average had expected a profit of Rs 6,500 crore, according to Refinitiv IBES data.
The sharp up move in profit came on the back of strong large deal wins. The company won large deals worth $3.3 billion and December quarter was the best in last eight quarters, the Bengaluru-based company said.
Infosys' revenue from operations rose nearly 5 per cent, quarter-on-quarter (QoQ) to Rs 38,318 crore compared with Rs 36,538 crore in the previous quarter. In dollar terms, its revenue rose 9.6 per cent annually to $4,659 million and posted annual revenue growth of 13.7 per cent in constant currency terms.
Infosys expects revenue growth of 16 per cent to 16.5 per cent for the financial year to March, from revenue growth of 15 per cent-16 per cent projected earlier.
Revenue from digital business comprised 62.9 per cent of overall revenues and grew at 21.7 per cent in constant currency. Operating margin for the quarter remained resilient at 21.5 per cent, Infosys 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”, said Salil Parekh, MD and CEO.
“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.
Infosys attrition improved to 24.3 per cent from 27.1 per cent in the previous quarter.
Infosys shares closed 0.62 per cent higher at Rs 1,480, ahead of its earnings announcement.