Infosys net profit rises to 16.6% in Q3

Infosys, on Wednesday, reported a 16.6% year-on-year rise in the net revenues going up to 5,197 crore for  December quarter. Gross revenue rose to 12.3% year-on-year to 25,927 crore for the quarter.

Commenting on the Q3 earnings, CEO Salil Parekh said, “The Infosys team has delivered another quarter of excellent results. Execution of client relevant strategy focused on digital transformation continues to drive superior growth, well ahead of the industry. The scale of new client partnerships with leading global companies such as Vanguard, Daimler and Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys. The commitment and skills of our employees to support and drive the digital journey of clients are matters of great pride for me.”

Infosys raised FY21 revenue growth guidance to 4.5%-5.0% in constant currency while increasing operating margin guidance to 24.0%-24.5%.

The company said its Q3 operating margin stood at 25.4%, an increase of 350 bps over the same period last year. The IT major also raised revenue and margin guidance band to 4.5-5%, and 24-24.5%, respectively, on the back of continued strong performance.

Q3 revenues grew year-on-year by 8.4% in USD; grew by 6.6% in constant currency. Digital revenues cross 50% of total revenue, year-on-year growth of 31.3% in constant currency. Q3 net profit at $705 million, year-on-year growth of 12.6%. Continued strong Q3 free cash flow at $772 million, year-on-year growth of 15.1%; FCF conversion at 109.0% of net profit.

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