The company has increased the guidance on earnings for the financial year 2021-22 to 19.5-20 percent, from 16.5-17.5 percent earlier.
Third quarter profit up 12 percent
IT sector major Infosys has released its third quarter results (Infosys Q3 Reals). According to the information given to the stock market, the consolidated net profit of the company has increased by 12 percent in the quarter ended December. At the same time, the revenue from operations has increased by 22 percent as compared to last year. Along with better results, the company has also increased its earnings guidance for the year 2022.
How were the company’s results?
According to the release given on the BSE, the consolidated net profit of the company in the December quarter has been Rs 5809 crore, with an increase of 11.8 percent over the previous year. Last year, the company had a profit of Rs 5197 crore. At the same time, according to the company, the income from operations of the company during this period has increased by 22.91 percent to Rs 31,867 crore as compared to Rs 25927 crore a year ago. The company informed that the total contract value reached $2.53 billion in the third quarter with the big deal being won. During this period, the operating margin of the company has been at better levels with 23.5 percent. However, it has decreased by 1.9 percent as compared to last year.
Increase in revenue guidance
Along with the results, the company has increased the earnings guidance to between 19.5 percent and 20 percent for the financial year 2021-22. Earlier, the income guidance for the financial year was in the range of 16.5 per cent to 17.5 per cent. During the quarter, the company’s digital segment revenue accounted for 58.5 percent of the total income. At the same time, this share was 56.1 percent in the September quarter. According to the company, revenue through digital was $ 2480 million during the quarter, while total income was $ 4250 million. Income from the digital segment has grown by 41.2 percent as compared to last year. If we look at the segment, there has been a growth of 15 percent in financial services segment, 19.4 percent in retail, 21.7 percent in communication, 46 percent in manufacturing and 28 percent in life sciences as compared to last year. After the results, Salil Parekh, CEO and MD, Infosys said, “Our superior performance and growth in market share has proved that customers have reposed their trust in us for their own digital transformation. We hope that in the coming times, with a large number of companies going digital, the expenditure of companies in this segment will increase further.