The share price of Infosys fell 5 percent in early deals on Thursday on profit-booking after the IT major reported better-than-expected earnings for the December quarter.

The stock lost as much as 5 percent to its day's low of Rs 1,318 per share on the BSE.

The company posted a 16.6 percent year-on-year (YoY) rise in consolidated net profit at Rs 5,197 crore in Q3 as against Rs 4,466 crore in the year-ago quarter.

Its revenue grew 12.3 percent to Rs 25,927 crore in the quarter under review from Rs 23,092 crore in the corresponding period last fiscal, it added.

Infosys also increased its FY21 revenue growth guidance to 4.5-5 percent in constant currency terms. In October, Infosys had guided towards 2-3 percent revenue growth in FY21 on a constant currency basis.

Most brokerages have a 'buy' call on the stock after the Q3 earnings and raised their target prices.

Global brokerage house CLSA raised its target to Rs 1,620 per share from Rs 1,480 earlier.

"Infosys reported a strong $5.2 billion in net new large-deal wins in 3QFY21 that positions it well for 15 percent dollar revenue growth in FY22. Management expects to offset associated margin headwinds from transition costs and passthrough revenue in such deals via a combination of operating leverage and improved profitability in previously won deals," the brokerage said in a results review note.

Evidently, increased sales aggression and best-in-class execution are helping Infosys gain disproportionate share as clients explore cost-takeout deals to fund digital spending, making Infosys one of the best plays on the theme, it added.

Meanwhile, Edelweiss increased its target price to Rs 2,124 per share, Credit Suisse to Rs 1,810 and Morgan Stanley to Rs 1,700.

Salil Parekh, CEO and MD of the firm, 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."