Infosys Q3FY22 Results: Profit jumps 7% QoQ to Rs 5,809 crore; raises FY22 revenue guidance

IT major Infosys on Wednesday posted its financial results for the quarter ended December 31, 2021 (Q3FY22). The company has reported a 7.1 per cent QoQ rise in its consolidated profit at Rs 5,809 crore for the reported quarter compared to a profit of Rs 5,421 crore posted in the previous quarter ended September 30, 2021 (Q2FY22).

On a year-on-year (YoY) basis, the profit rose 11.8% against Rs 5,197 crore posted in the corresponding quarter of the previous financial year (Q3FY21).

The company said that its revenue from operations grew 7.7% QoQ to Rs 31,867 crore compared to Rs 29,602 crore posted in the previous quarter. Its revenue in dollar terms grew 6.3% QoQ to $425 crore compared to $399.8 crore posted in the September quarter.

The Bengaluru-based company's Earnings before interest and taxes (EBIT), an indicator of a company's profitability, grew by 7.3% QoQ to Rs 7,484 crore compared to Rs 6,972 crore posted in the previous quarter. Its margin remained almost flat at 23.5 per cent in Q3FY22 compared to 23.6 per cent in Q2FY22.

The company upgraded its revenue guidance from 19.5 per cent to 20 per cent for FY22. Earlier it had estimated growth at 16.5-17.5 per cent in constant currency.

The global leader in next-generation digital services and consulting has said that the Growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and regions. Large deal wins accelerated with TCV of $2.53 billion in Q3. The operating margin for the quarter was healthy at 23.5 per cent, with Free Cash Flow conversion at 92.6 per cent.

"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 per cent-20.0 per cent for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations," said Salil Parekh, CEO and MD.