Infosys net profit rises 12%, beats estimates, revises revenue guidance upwards

India’s second-largest information technology company Infosys reported a net profit of Rs 5,809 crore, against Rs 5,197 crore during the same period last year.

infosys, infosys share price
Earlier this month, Infosys stock hit a fresh 52-week high of Rs 1,914 apiece.

Infosys reported a 12% jump on-year basis in net profit during the October-December quarter of the current fiscal year, beating street estimates. India’s second-largest information technology company Infosys reported a net profit of Rs 5,809 crore, against Rs 5,197 crore during the same period last year. Revenue rose to Rs 31,867 crore against Rs 25,927 in the year-ago period. Analysts had estimated Infosys’ net profit to rise in the range of 7-10% during the third quarter of the financial year. Infosys’ share price rose 1.2% to close the day’s trade at Rs 1,877 per share.

QUARTERLY PERFORMANCE HIGHLIGHTS
Net Profit – Rs 5,809 crore (12% increase on-year)
Revenue – Rs 31,967 crore (23% increase on-year)
Total expenses – Rs 24,436 crore
Free cash flow – Rs 5,399 crore
Number of active clients – 1,738 (from 1,562 a year ago)
100 million dollar+ clients – 37 (from 29 a year ago)

Infosys expects to continue its robust earnings growth further, upgrading its revenue guidance to 19.5%-20.0% for the current financial year. “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 is reflected in an upgrade in our revenue guidance to 19.5%-20.0% for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, CEO, and MD of Infosys.

The Bengaluru-based company said that large deal wins accelerated with a total contract value of $2.53 billion in the October-December quarter. “Despite the cost escalations driven primarily by supply-side challenges, we delivered another quarter of healthy margins, with improved cost optimization, continued operating leverage, and a stable pricing environment”, said Nilanjan Roy, Chief Financial Officer, Infosys. 

Infosys said it has further increased its global graduate hiring program to over 55,000 for the current financial year.

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