Infosys beats estimates with Q3 PAT rising 12% yoy to Rs5,809cr; Raises FY22 revenue guidance; Stock jumps 1%

13 Jan 2022 , 02:13 PM

Bengaluru-based Infosys posted a strong December 2021 (Q3FY22) quarter with consolidated profit rising by 11.8% to Rs5,809cr compared to Rs5,197cr in the corresponding period of the previous year. Sequentially, Infosys profit rises by 7.1%. The company had surpassed markets expectations.

Consolidated revenue stood at Rs 31,867cr in the quarter under review, growing by 22.9% yoy and 7.7% qoq. In terms of constant currency, revenue growth was 7% qoq and 21.5% yoy.

Infosys stated that the company delivered strong Q3 performance with sequential growth of 7.0% in a seasonally weak quarter and year-on-year growth of 21.5% in constant currency. Growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions.

Further, large deal wins accelerated with TCV of $2.53 billion in Q3. Operating margin for the quarter was healthy at 23.5%, with Free Cash Flow conversion at 92.6%.

“Our talent strategy continued to be a key focus area marked by efforts to further strengthen employee skilling and well-being while nurturing our workforce to fulfil client requirements,” Infosys added.

The company has raised its revenue guidance going forward.

“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”, said Salil Parekh, CEO and MD.

“Despite the cost escalations driven primarily by supply side challenges, we delivered another quarter of healthy margins, with improved cost optimization, continued operating leverage and a stable pricing environment”, said Nilanjan Roy, Chief Financial Officer. “We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions”, he added.

At around 2.05 pm, Infosys was trading at Rs1898.80 per piece up by Rs21.20 or 1.1% on Sensex. The stock has touched an intraday high of Rs1912 per piece and was near the 52-week high of Rs1,914 per piece.