Infosys gains as IT major posts 12% rise in Q3 profit, raises FY22 revenue guidance

NEW DELHI – Shares of gained almost 2% in early trade Thursday as the IT software major posted a near 12 per cent rise in its December quarter net profit to Rs 5,809 crore and raised its annual revenue forecast on the back of strong demand from businesses going digital amid the pandemic.

The company's consolidated net profit in the September-December 2020 quarter was Rs 5,197 crore.

The company’s scrip touched a high of Rs 1,910.30 against Rs 1,877.45 at the previous close on the National Stock Exchange.

Infosys said its revenue from operations increased 22.91 per cent year-on-year (YoY) to Rs 31,867 crore. The figure stood at Rs 25,927 crore in the same quarter last year.

The company upgraded its revenue guidance to 19.5%-20% for FY22. Earlier it had estimated growth at 16.5%-17.5% in constant currency.

The Bengaluru-based firm said it delivered a strong Q3 performance with sequential growth in a seasonally weak quarter. Infosys outlined that its growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions.

Large deal wins accelerated with a total contract value (TCV) of $2.53 billion in Q3. The operating margin for the quarter was healthy at 23.5 per cent, with free cash flow conversion at 92.6 per cent.

The company said its operating margin during the quarter was at 23.5 per cent. It declined 1.9 per cent YoY and 0.1 per cent QoQ.

Free cash flow stood at $719 million, down 6.9 per cent YoY. Infosys’ digital revenues were 58.5 per cent of total revenues.