IT major Infosys announced its earnings for the quarter ended December 31, 2021, on Wednesday and its net profit grew 11.8 percent from a year-ago period to Rs 5,809 crore, beating Street estimates. A CNBC-TV18 poll of analysts had predicted the profit to jump to Rs 5,701 crore.

Infosys posted revenue worth Rs 31,867 crore in the third quarter of the fiscal, up nearly 23 percent from the corresponding quarter last year. On a quarter-on-quarter basis, the revenue grew 7.6 percent, up from Rs 29,602 crore in the quarter ended September 30, 2021.

The tech giant’s revenue too beat the expectations as experts had predicted the figure to stand at Rs 30,940 crore. Segment-wise, digital revenues were at 58.5 percent of total revenue.

In dollar terms, the revenue stood at $4,250, which is up 6.3 percent on a quarter-on-quarter basis. The CNBC-TV18 poll had projected a growth of 3.1 percent from the previous quarter’s reading of the reading was at $3,998 million.

While the street expected Infosys to tighten the FY22 revenue guidance to 17.5-18.5 percent, the firm has revised it to 19.5-20 percent from 16.5-17.5 percent earlier.

Post the Q3 earnings announcement, Salil Parekh, Infosys CEO and MD, said the company’s strong performance and market share gains are a testament to the confidence its clients have in it to help them in digital transformation.

Also Read: Wipro Q3 Results: Net profit flat at Rs 2,970 crore, revenue up 30%; declares interim dividend

“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%-20.0% for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, he said.

The tech company’s EBIT stood at Rs 7,484 crore for the quarter in consideration against Rs 6,972 crore in the September quarter. The EBIT margin was recorded at 23.5 percent.

With a massive shift towards digital, given the COVID-19 pandemic conditions at hand, IT companies came to the forefront. Nifty IT saw one of its best runs in the last two quarters. Meanwhile, Infosys, which was among the best performers in the pack, ended Wednesday’s session 1.09 percent higher ahead of the earnings announcement.

Commending Infosys’ better than expected performance in Q3, Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd, said, “Constant Currency growth also rose from 6.3% to 7% against 3.5% street expectation…Large deals stood at $2.53 bn giving strong growth visibility.”

Following the strong Q3 quarter, Tapse said, he expects the stock to react positively and that his firm is overall optimistic on the stock with a medium to long term horizon with a technical target above Rs 2000 mark in six to 12 months period.

Meanwhile, in line with survey’s suggested a hiring boom in the IT sector, Infosys has said it will hire 55,000 employees in FY22, as against the earlier target of 45,000. However, the company’s attrition rate increased to 25.5 percent versus 20.1 percent in the previous quarter.

Also, catch India Inc Q3 earnings live updates here

First Published:Jan 12, 2022 4:34 PM IST