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.
