Infosys Q3 PAT sharply up 16.77% yoy at Rs5,215cr on robust OPM

Infosys reported 12.28% growth in Dec-20 quarter top line revenues at Rs25,927cr, largely driven by digital at 50% share

Jan 13, 2021 11:01 IST India Infoline News Service

Infosys Ltd reported 12.28% growth in Dec-20 quarter top line revenues yoy at Rs25,927cr. The revenues of Infosys showed a sharp growth across verticals with the share of digital business growing from 40% of total revenues to 50% of total revenues on a yoy basis. The growth in revenues has been led by growth in digital.

For the Dec-20 quarter, the operating profits were sharply up 30.11% at Rs6,589cr. This was on the back of higher revenues and also much better operating matrix despite higher manpower costs. As a result, the operating margin or OPM expanded sharply from 21.93% in the Dec-19 quarter to 25.41% in Dec-20 quarter.

Profit after tax (PAT) for the Dec-20 quarter was up 16.77% at Rs5,215cr on the back of revenue growth and a sharp spike in OPM. Due to the sharp spike in tax outflow, PAT margins for the Dec-20 quarter only grew from 19.34% in Dec-19 to 20.11% in Dec-20.

Financial highlights for Dec-20 compared yoy and sequentially

Infosys Ltd
Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 25,927 ₹ 23,092 12.28% ₹ 24,570 5.52%
Operating Profit (Rs cr) ₹ 6,589 ₹ 5,064 30.11% ₹ 6,228 5.80%
Net Profit (Rs cr) ₹ 5,215 ₹ 4,466 16.77% ₹ 4,858 7.35%
Diluted EPS (Rs) ₹ 12.23 ₹ 10.50 ₹ 11.40
OPM 25.41% 21.93% 25.35%
Net Margins 20.11% 19.34% 19.77%

Key takeaways from the Dec-20 quarter results

  • During the quarter, Infosys signed $7.13 billion worth of large deals. The digital business grew by 31.3% and largely drove the top line. Digital now accounts for 50% of the total revenue pie, up from just 40% in the previous year.

  • In terms of yoy growth in market share of various verticals, BFSI, Hi-Tech and life sciences improved their share of revenues. On the other hand the share of retail, energy, communication and manufacturing in the revenue pie was down yoy.

  • There were some interesting client trends in the quarter. A total of 139 new clients were added in the quarter, much higher than previous quarters. The number of million dollar clients was up 8% at 761 clients. Repeat business accounted for 95.1% of revenues, which is slightly lower than previous quarters.

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