Infosys Ltd. raised its revenue growth forecast for the full year on the back of large deal wins and increased client spending.
The software services exporter’s revenue rose 7.65% sequentially to Rs 31,867 crore in the three months through December, according to its exchange filing. That compares with the Rs 30,868-crore consensus estimates of analysts tracked by Bloomberg.
Revenue in U.S. dollar terms rose 6.30% over the preceding three months to $4,250 million.
Revenue growth in constant currency terms stood at 7%.
Infosys raised its revenue growth estimate to 19.5-20% for the ongoing fiscal from 16.5-17.5% projected at the end of second quarter. It, however, retained its operating profit margin forecast at 22-24%.
This means Infosys is guiding for a flat quarter-on-quarter growth in Q4.
Key Highlights: Q3 FY22 (QoQ)
Net profit rose 7.16% to Rs 5,809 crore, against the Rs 5,745-crore forecast.
EBIT increased 7.34% to Rs 7,484 crore, compared with the estimated Rs 7,281 crore.
EBIT margin remained steady at 23.49% despite supply-side challenges and wage hikes.
Attrition rate at the end of Q3 stood at 25.5%.
Business Environment
The I.T. company's growth remained broad-based and deal momentum robust in Q3, with digital transformation rapidly scaling across verticals and regions.
"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," Chief Executive and Managing Director Salil Parekh said in a media statement.
"This is reflected in an upgrade in our revenue guidance to 19.5%-20.0% for FY22," he said. "We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations."
Attrition rate rose to 25.5% from 13.9% in the first quarter. The company has increased the guidance to hire from campuses to 55,000 from 45,000 in the ongoing fiscal.
The company won deals worth $2.53 billion in the October-December period, compared with $2.15 billion in the prior quarter.
Segmental Revenues
The company's life sciences segment grew the most in Q3, at 13.3%. Manufacturing segment grew by 11.8% led by the deal with Daimler.
Shares of Infosys closed 1.09% higher ahead of the earnings announcement, while the benchmark NSE Nifty ended 0.87% up.
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