Beating expectations, Infosys today reported 13 per cent jump in consolidated net profit for the third quarter to Rs 3,250 crore, helped by increase in business and clients from North America, as also from India.
The country's second largest software services firm's consolidated revenue rose 5.9 per cent to Rs 13,796 crore in the quarter ended December 31, while it maintained its revenue outlook for the entire fiscal ending March 31.
Increasing its focus on software products and new age solutions like Artificial Intelligence, Internet of Things, Infosys also said it has expanded its innovation fund from the USD 100 million to USD 500 million, which will be used to invest in young firms world-wide.
Reacting to the results, Infosys shares rose by over 5 per cent to Rs 2,073.60 apiece on the BSE, lifting the overall market.
Commenting on the firm's performance, Infosys CEO Vishal Sikka said: "We are excited by several breakthrough results in Q3. Our 'renew and new' strategy, is being received well by our clients and our ecosystem and we are already seeing its early adoption."
In dollar terms, Infosys posted 12.7 per cent jump in net profit to USD 522 million, while revenue was up 5.6 per cent to USD 2.21 billion in the third quarter.
Brokerage firm Angel Broking's Sarabjit Kour Nangra said that the third quarter profits are better than expected, while a sequential growth of 0.8 per cent in revenues at USD 2.2 billion is also in line with the expectations.
Infosys COO U B Pravin Rao said: "During the quarter, we saw broad-based volumes growth, increased utilisation and strong client additions. We have made 100 per cent variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters."
During the third quarter, 2014-15, the firm added 4,227 people (net), taking its total headcount to 1,69,638. Infosys and its subsidiaries also added 59 clients (gross) during the quarter.
