Infosys Ltd Q3 net up 11.78% at Rs5,809cr but operating margins come under pressure in Q3

12 Jan 2022 , 08:08 PM

Infosys Ltd reported 22.91% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs31,867cr. On a sequential basis, the revenues were up by 7.65%. During the December 2021 quarter, BFSI continued to account for nearly one-third of the total revenues and about one third of the segment operating profits too.

While BFSI had an operating margin of around 27%, it was retail with operating margins of 35.3% that was the pick of the lot on the margins front. During the quarter, Infosys signed big deals worth $2.53 billion with digital revenues growing by a whopping 42% on a yoy basis.

In terms of revenue share, digital accounts for 58.5% of total revenues up from 50.1% in the year ago period and 56.1% in the Sep-20 quarter.

In terms of revenue mix, financial services was stable to lower at around 31.5%. This was followed by Retail share at 14.5%, communications at 12.5%, energy at 11.7% and manufacturing at 11.3%.

n terms of geographical mix, North American continues to account for the largest 61.8% of the revenue share while Europe and UK account for nearly 25% of revenues. The rest of the world is 10.3% with India accounting for 3% of total revenues of Infosys. As of the Dec-21 quarter, Infosys has 1,738 clients  with nearly 50% being 1 million dollar plus clients. It has 37 clients in the $100 million plus bulge bracket. Top five clients account for 12% of the total revenues.

Operating profit grew 13.58% at Rs7,484cr with growth weakening due to operating costs pressure on travel, manpower and contracting. Operating margins narrowed by 192 bps yoy. Consolidated Profit after tax (PAT) for the Dec-21 quarter was up 11.78% at Rs5,809cr on the back of good traction in high value clients.

However, higher operating costs did hit the operating margins as was broadly expected. PAT margins narrowed from 20.04% in the Dec-20 quarter to 18.23% in the Dec-21 quarter. Net margins were also lower sequentially. The company has declared interim dividend of Rs.15 per share.

Financial highlights for Dec-21 compared yoy and sequentially

	Infosys Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 31,867	₹ 25,927	22.91%	₹ 29,602	7.65%
Operating Profit (Rs cr)	₹ 7,484	₹ 6,589	13.58%	₹ 6,972	7.34%
Net Profit (Rs cr)	₹ 5,809	₹ 5,197	11.78%	₹ 5,421	7.16%
Diluted EPS (Rs)	₹ 13.83	₹ 12.23		₹ 12.85
OPM	23.49%	25.41%		23.55%
Net Margins	18.23%	20.04%		18.31%