India’s second-largest IT company Infosys on Friday reported a rise of 38.22% in the net profit to Rs 5,129 crore for the October-December quarter for the current fiscal as compared to Rs 3,708 in the same period last year. The total revenues from operations rose marginally to Rs 17,794, up by 3.01% for the third quarter ended 31 December 2017. Infosys posted a total revenue of Rs 17,273 crore for the October-December quarter of the financial year 2016-2017. Interestingly, the EPS (earnings per share) jumped 38% while the cash and cash equivalents declined by 33% due to the mega share buyback of worth Rs 13,000.
Following the mega buyback of Rs 13,000 crore, the EPS of Infosys has increased by 38% while on the other hand, the cash reserves of the IT giant have reduced by 33% at the end of 31 December 2017. The basic EPS of Infosys rose 38.34% to Rs 22.55 per equity share for the quarter ended 31 December 2017 versus Rs 16.3 at the end of 30 September 2017. While, on the other hand, the cash and cash equivalents of Infosys have reduced 33.4% to Rs $3,615 million at the end of 31 December 2017 as compared to $5,428 million at the end of 30 September 2017.
“It is a privilege for me to be appointed as the CEO & MD of Infosys, helping our clients navigate the digital future and employees build new skills and capabilities. Our Q3 performance is strong. We had 8% year-on-year growth and 24.3% operating margin with US$ 593 million of free cash flow,” said Salil Parekh, CEO & MD.
“We are progressing towards stability and are well positioned to serve our clients in the new areas of demand” he added. “Increased adoption of our digital offerings and new services helped stabilize price realization. We were able to grow client relationships across revenue categories,” said Pravin Rao, COO. “During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continues to deliver results as reflected in lower attrition,” Pravin Rao added.
“Our operating margins were stable on the back of broad-based improvement in operational efficiency parameters. Our cash generation continued to be robust during the quarter,” said M.D. Ranganath, CFO. “We successfully executed the share buyback of Rs 13,000 crores in line with our capital allocation policy,” M.D. Ranganath added.
Meanwhile today, Infosys shares surged 0.87% to hit a fresh 52-week high of Rs 1,085.9 before settling up 0.26% at Rs 1,078.65 on NSE.