Infosys on January 12 reported a 13.4 percent rise in its consolidated net profit for the quarter ended December 2022 at Rs 6,586 crore. The country's second-largest IT firm had reported a net profit of Rs 5,809 crore in the same quarter last year.
Its consolidated revenue from operations increased 20.2 percent to Rs 38,318 crore against Rs 31,867 crore in the corresponding quarter last year, Infosys said in an exchange filing.
The reported numbers beat estimates. According to a poll of brokerages, consolidated revenue was expected to come in at Rs 37,613 crore, up 18 percent year-on-year (YoY) growth. In comparison, consolidated profit after tax (PAT) was estimated to increase 10.5 percent YoY to Rs 6,418 crore.
In constant currency terms, YoY revenue growth was at 13.7 percent while sequential growth stood at 2.4 percent. Digital revenue comprised 62.9 percent of overall revenues and grew at 21.7 percent in constant currency.
Year-on-year growth was in double digits for most business segments and geographical regions in constant currency terms. The IT firm added that the total contract value for the quarter was the strongest in the last eight quarters at $3.3 billion. The operating margin of the company, however, slipped to 21.5 percent from 23.5 percent a year ago. It was flat sequentially.
“Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters,” said Nilanjan Roy, Chief Financial Officer, Infosys. “Attrition
reduced meaningfully during the quarter and is expected to decline further in the near term."
Last twelve month IT services voluntary attrition rate - measuring the percentage of employees leaving the company during the period- declined to 24.3 percent. It was 27.1 percent in the previous quarter and 25.5 percent in the same quarter last year.
Infosys revised its FY23 guidance higher to 16-16.5 percent. It retained FY23 operating margin guidance at 21-22 percent.
“Our revenue growth was strong in the quarter, with both digital business and core services growing,” said Salil Parekh, CEO and MD, Infosys. “As reflected in the large deal's momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors.”
The company informed that during its ongoing buyback program via the open market route, it has repurchased 31.3 million shares worth Rs 4,790 crore or 51.5 percent of the total authorisation of Rs 9,300 crore at an average price of approx. Rs 1,531 per share compared to the maximum Buyback Price of Rs 1,850 per share.