Infosys Q3 result: IT major's revenue grows 20% YoY to Rs 38,318 cr

The attrition rate has been recorded at 24.35 in Q3FY23. In Q3FY22, it was at a higher 25.5%

IT giant Infosys recorded a 20.2 per cent growth in revenue at Rs 38,318 crore in the third quarter of the current financial year (Q3FY23) as compared to Rs 31,867 crore year-on-year (YoY), according to the BSE filing of the company. The net profit of the company rose 13.4 per cent to Rs 6,586 crore during Q3FY23.

The IT services company said on Thursday it sees its FY23 revenue guidance in the range of 16 per cent to 16.5 per cent and maintained that its operating margin guidance will be at 21-22 per cent.
 

In Q3FY22, the net profit was Rs 5,809 crore. It registered an operating margin of 21.5 per cent during the quarter. On the basis of constant currency, the revenue growth was 13.7 per cent.

"Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees”, said Salil Parekh, CEO and MD of the company.

On the quarter-to-quarter (QoQ) basis, the revenue growth was 2.4 per cent, the company's financial statement showed. 

The profit of the company, as compared to the previous quarter (Q2FY23) was up 9.4 per cent. In Q2FY23, the profit stood at Rs 6,021 crore. 

In the nine months of FY23, the profit was up 9.4 per cent to Rs 17,967 crore from Rs Rs 16,425 crore in the same period in FY22. The reported revenues saw a growth of 22.3 per cent to Rs 109,326 crore. 

In Q3 the company's total contract value was $3.3 billion. It was up from $ 2.7 billion in Q2 FY23.

"As reflected in the large deals 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. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness," Parekh added. 

The attrition rate has been recorded at 24.3 per cent. In Q3FY22, it was at a higher 25.5 per cent. The net headcount was up 54,778 YoY with an employee growth of 18.75 per cent. Another IT giant TCS had recorded a fall in over 2,000 employees in the same period.

"Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters", said Nilanjan Roy, CFO of Infosys.

"Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term," Roy added.