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Infosys raises FY22 revenue guidance

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Capital Market
Last Updated : Jan 13 2022 | 10:31 AM IST

Infosys, while announcing its third quarter earnings, has revised upwards its revenue guidance for FY22 to 19.5%-20%.

The IT firm's consolidated net profit rose 7.1% to Rs 5,809 crore on a 7.7% increase in revenues to Rs 31,867 crore in Q3 FY22 over Q2 FY22.

On a year-on-year basis, Infosys' net profit and revenue in Q3 FY22 increased 11.8% and 22.9%, respectively.

In dollar terms, the company reported revenues of $4,250 million, registering a growth of 20.9% YoY for the quarter ended 31 December 2021.

Revenues in constant currency terms grew by 21.5% YoY and 7% QoQ. Operating margin for the quarter stood at 23.5%, a decline of 1.9% YoY and 0.1% QoQ.

For the quarter ended 31 December 2021, Free cash flow (FCF) was $719 million, registering a YoY decline of 6.9% while FCF conversion was at 92.6% of net profit.

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Infosys said growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions. Large deal wins accelerated with total contract value (TCV) of $2.53 billion in Q3.

Infosys has revised upwards its revenue guidance for FY22 to 19.5%-20%. Margin guidance is retained at 22%-24%.

Salil Parekh, CEO and MD, said: "Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This 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.

The company had 1,738 active clients as of 31 December 2021, compared with 1,714 as on 30 September 2021 and 1,562 as on 31 December 2020.

Last twelve months IT services attrition rate stood at 25.5% as at 31 December 2021 as against 20.1% as on 30 September 2021 and 11% as on 31 December 2020.

Infosys is a global leader in next-generation digital services and consulting.

Shares of Infosys advanced 0.72% to currently trade at Rs 1891.15 on the BSE. The scrip has traded in the range of Rs 1891.15 and Rs 1891.15 so far during the day.

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First Published: Jan 13 2022 | 10:14 AM IST

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