Infosys net profit rises by 13.4% to touch Rs 6,586 Cr
, India’s second-largest IT services exporter, reported a 13.4% year-on-year (YoY) rise in net profit for the third quarter of FY23, driven by strong business momentum and cost optimisation. These numbers also beat market expectations.
The net profit for the October-December 2022 quarter stood at Rs 6,586 crore as compared to Rs 5,822 in the year-ago period. The revenue growth during this period was 20.2% YoY, and the number stood at Rs 38,318 crore.
On the performance of the company, Infosys CEO Salil Parekh said, “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.”
The share price of Infosys ended at Rs 1,482.95 on Thursday, which was almost the same as Wednesday.
The tech giant's positive performance stands out despite the third quarter generally being regarded as weak due to the festive season. The company also marginally increased its revenue guidance for the fiscal. Infosys has revised the guidance upwards to 16%-16.5% from the previous level of 15%-16%.
Infosys said the total contract value of large deals stood at $3.3 billion for the quarter and this was the strongest in the last eight quarters. The operating margin for the quarter stood at 21.5%.
“Operating margins in Q3 remained resilient due to cost optimisation benefits which offset the impact of seasonal weakness in operating parameters,” said Infosys CFO Nilanjan Roy.
The attrition rate at the end of the third quarter stood at 24.3%, which was lower than 27.1% reported in the second quarter of the fiscal and the employee headcount at Infosys stood at 3,46,845.
According to the CFO, the attrition rate is expected to decline further in the near term.
Infosys also announced the appointment of Govind Vaidiram Iyer as additional and independent director of the company’s board. He will be there for a period of five years.
The strong performance of Infosys where the earlier precedent was set by TCS should put to rest the fears about the impact from the economic slowdown in the West.
Edited by Kanishk Singh