The IT major has revised FY21 growth guidance upward to 4.5% to 5% in constant currency term.
On a consolidated basis, the IT major's net profit jumped 16.6% to Rs 5,197 crore on a 12.3% rise in revenues to Rs 25,927 crore in Q3 December 2020 (Q3FY21) over Q3 December 2019 (Q3FY20).
Sequentially, net profit rose 7.3% and revenue increased 5.5% in Q3FY21 over Q2 September 2020 (Q2FY21). Profit before tax (PBT) stood at Rs 7,151 crore in Q3 FY21, gaining 5.9% over Rs 6,750 crore in Q2FY21. Income tax expense rose 2.3% to Rs 1,936 crore in Q3 FY21 over Q2 FY21.
Operating profit rose 5.8% to 6,589 crore in Q3 FY21 over Q2 FY21. Operating margin stood at 25.4% in Q3FY21, higher than 25.3% in Q2 FY21 and 21.9% in Q3FY20.
The company has revised FY21 growth guidance upward to 4.5% to 5% in constant currency term. Operating margin for FY21 is revised upward in the range of 24% to 24.5%.
Infosys has delivered its highest Q3 sequential growth of 5.3% in eight years in constant currency. On a year-on-year (Y-o-Y) basis, revenues grew by 6.6%, digital revenues grew by 31.3% and overall digital revenue crossed more than half of total revenues. Large deal TCV was at an all time high of $7.13 billion with 73% being net new.
Commenting on the Q3 results, Salil Parekh, the chief executive officer (CEO) and manging director (MD) of Infosys, said that: "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. With the intense focus on client needs and the comprehensive foundation built on differentiated capabilities, I remain confident about the future."
Consolidated cash and investments were at Rs 33,157 crore as on 31 December 2020 compared with Rs 24,434 crore as on 31 December 2019 and Rs 33,601 crore as on 30 September 2020.
The attrition rate for Q3FY21 declined to 10% as against 15.8% in Q3FY20. Infosys had 2,49,312 employees as of 31 December 2020 as against 2,43,454 in the same period last year.
Shares of Infosys rose 1.16% to Rs 1,387.70 on Wednesday. Infosys is a global leader in next-generation digital services and consulting.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU