Infosys ups guidance, posts 12% rise in Q3 net to Rs 5,809 cr

IT services major Infosys continued to maintain its growth trajectory as it met street expectations even as the company revised its revenue guidance for the fiscal year 2022 to 19.5 per cent to 20 per cent. The company had raised its guidance for FY22 in Q2 to a growth of 16.5 per cent to 17.5 per cent.

For the quarter the company reported net profit of Rs 5,809 crore up 11.8 per cent year on year and grew 7 per cent on sequential basis. Revenue for the quarter grew by almost 23 per cent at Rs 31,867 crore and sequentially was up 7.6 per cent.

In US dollar terms the company’s revenue growth was 7 per cent in constant currency basis.

"Our strong performance stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance to 19.5%-20.0% for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, CEO and MD.

The company said that the growth was broad based and across geographies. Large deal TCV for the quarter was at $2.53 billion.

The concern on attrition continued as the company saw its attrition (LTM basis) up at 25.5 per cent. This is significantly up from 20 per cent in the last quarter. However, the company stated that attrition is coming down.

“Despite the cost escalations driven primarily by supply side challenges, we delivered another quarter of healthy margins, with improved cost optimization, continued operating leverage and a stable pricing environment”, said Nilanjan Roy, Chief Financial Officer. “We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions”, he added.

Digital revenues grew 42.6 per cent in constant currency ona YoY basis. It is now 58.5 per cent of the total revenues.