Last updated: January 12, 2023, 4:40 PM IST
Infosys posted revenue growth of 20.2 percent at Rs 38,318 crore in the third quarter of the current fiscal year (Q3FY23) compared to Rs 31,867 crore year-on-year (YoY), according to the company’s BSE filing. The company’s net profit rose 13.4 percent to Rs 6,586 crore during Q3FY23.
The IT major said its deals were strongest in eight quarters as it revised its revenue forecast for FY23 upwards to 16-16.5 percent in constant currency (CC). Infosys, however, maintained its 21-22 percent Ebit margin guidance for the fiscal year.
The IT major led by Salil Parekh said revenue for the third quarter rose 20.2 percent year-on-year to Rs 38,318 crore compared to Rs 31,867 crore in the same quarter a year ago. Dollar sales were $4,659 million, up 2.3 percent sequentially.
The IT company said CC revenue growth was 13.7 percent year-over-year. The growth of CC income was 2.4 percent consecutively.
Operating profit margin for the quarter was 21.5 percent, compared to 23.5 percent in the same quarter last year.
Infosys has revised its CC earnings outlook upward to 16 percent – 16.5 percent from 15 percent – 16 percent previously. The company won $3.3 billion in orders during the quarter – the highest number in the past eight quarters. “Year-over-year growth was in double digits for most business segments and geographies in constant currencies,” Infosys said. Digital represented 62.9 percent of total revenue and grew 21.7 percent in constant currency.
Attrition declined significantly during the quarter and is expected to continue to decline in the near term, said Nilanjan Roy, Chief Financial Officer, who said operating margins remained resilient in the third quarter due to cost optimization benefits that offset the impact of seasonal compensated for weakness in operational parameters.
CEO and MD Parekh said revenue growth was strong for the quarter, with both the digital business and core services growing. “This is a clear reflection of our deep customer relevance, industry-leading digital, cloud and automation capabilities, and the unwavering dedication of our employees,” said Parekh.
“As reflected in the momentum of large deals, we continue to gain market share as a trusted transformation and operations partner to our clients. Our end-to-end capabilities and global scale make us a preferred choice as customers look to consolidating suppliers. We remain focused on helping companies accelerate their digital agenda to discover new value and growth, and improve operational and cost effectiveness,” added Parekh.
Infosys informed bourses that it has initiated a share buyback program through an open market route from 7 December and till date it has bought back 31.3 million shares worth Rs 4,790 crore or 51.5 per cent of the total authorization of Rs 9,300 crore at an average price of about Rs 1,531 per share (compared to the maximum repurchase price of Rs 1,850 per share).
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