Infosys Q3 Results: Profit meets analysts' estimates, IT major raises 2022-23 growth guidance

Infosys -- India's second largest IT services firm -- on Thursday reported a net profit of Rs 6,586 crore for the October-December period, in line with analysts' estimates. The net profit grew 9.4 per cent compared with the previous quarter. The IT giant raised its revenue guidance and reported improvement on the attrition front. 

Revenue at the IT giant increased 4.9 per cent on a quarter-on-quarter basis to Rs 38,318 crore, according to a regulatory filing. 

According to Zee Business research, Infosys was estimated to report a quarterly net profit of Rs 6,580 crore and revenue of Rs 37,920 crore. 

Infosys raised its revenue growth guidance to 16.0-16.5 per cent for the year ending March 2023 from 15-16 per cent. The software exporter was expected to maintain its revenue guidance at the current levels, according to Zee Business research. 

Revenue in constant currency terms expanded by 2.4 per cent sequentially, according to the company. 

“Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, Cloud, and automation capabilities, and the unrelenting dedication of our employees," Infosys CEO and MG Salil Parekh said.

“As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors," he added. 

Attrition at Infosys came in at 24.3 per cent for the three-month period, declining 280 basis points compared with the previous quarter. The IT company's management expects attrition to ease further in the near term. 

The Bengaluru-based company's margin remained flat sequentially at 21.5 per cent, as against the estimate of 21.6 per cent by Zee Business research. 

Infosys retained its guidance for operating margin at 21-22 per cent for the year ending March 2023.

“Operating margins remained resilient due to cost optimisation benefits, which offset the impact of seasonal weakness in operating parameters," said Infosys CFO Nilanjan Roy.

Infosys shares ended higher by Rs 9.1 or 0.6 per cent at Rs 1,480.6 apiece on BSE ahead of the earnings announcement, outperforming the benchmark Sensex index, which declined 0.3 per cent. 

The stock rewarded investors with a return of 6.8 per cent in the December quarter, a period in which the 30-scrip index rose 5.9 per cent. 

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