Infosys Q3 Results Key Takeaways: PAT and revenue slip; attrition rate improves; IT giant revises guidance

Infosys Q3 Results Key Takeaways: Indian IT giant Infosys on Thursday (January 11, 2024) announced its third-quarter results, reporting a decline in its profit after tax (PAT), revenue from operations, and operating profits quarter-on-quarter. The company's attrition rate, however, improved in the quarter ended December 31, 2024.  

Infosys Q3 Results: PAT declines

The IT firm reported a PAT or net profit of Rs 6,106 crore for the third quarter, a drop of 1.7 per cent sequentially and 7.3 per cent Year-on-Year (YoY).

The profit missed Zee Business analysts' estimates of Rs 6,220 crore, up 0.1 per cent QoQ.

Infosys Q3 Results: Revenue slips marginally

The company's revenues from operations for the third quarter of the current financial year came in at Rs 38,821 crore, down 0.4 per cent QoQ and up 1.3 per cent YoY.

In constant currency (CC) terms, revenues declined 1 per cent YoY and QoQ.

Zee Business analysts had estimated the Bengaluru-headquartered IT firm’s revenue for the three months at Rs 38,525 crore, a slip of 1.2 per cent on a QoQ basis. 

In dollar terms, revenue was estimated to decline 1.9 per cent sequentially to $4,627 million, and 1.6 per cent in constant currency terms on account of seasonal weakness.

Infosys Q3 Results: Operating profit down

The IT firm's operating profit also slipped 3.8 per cent QoQ and 3.4 per cent YoY to Rs 7,961 crore. Its operating margin stood at 20.5 per cent, down 0.7 per cent QoQ and 1 per cent YoY. 

Infosys Q3 Results: Revises revenue guidance

The company also revised FY24 revenue guidance to 1.5 per cent – 2.0 per cent. Its operating margin guidance for the same period stands at 20 per cent -22 per cent.

“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital, and cloud to cost, efficiency, and automation,” said Salil Parekh, CEO and MD.

“Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses," Parekh added.

Infosys Q3 Results: Attrition rate eases

One of the good business aspects for the company in the third quarter was that its attrition rate declined to 12.9 per cent from 14.6 per cent, and 24.3 per cent in the year-ago period. 

Infosys Q3 Results: Acquisition of InSemi

Infosys also announced a definitive agreement to acquire InSemi, a leading semiconductor design and embedded services provider.

This strategic investment further strengthens Infosys’ engineering R&D capabilities and demonstrates its continued commitment to co-create with global clients to help them navigate their digital transformation journey.