Infosys Q3 Results: Guides For Muted Q4 But Raises FY22 Growth Forecast On Large Deal Wins
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%.
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.
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.