Infosys Q3 results: Net profit up 16.6% YoY to Rs 5,197 crore

New Delhi: Infosys on January 13 posted a 16.6% rise in consolidated net profit at Rs 5,197 crore for the December 2020 quarter, and increased its revenue growth guidance for FY21 to 4.5-5% on the back of large project wins and strong deal pipeline.

The Bengaluru-based company had registered a net profit (after minority interest) of Rs 4,457 crore in the year-ago period.

Infosys’ revenue grew 12.3% to Rs 25,927 crore in the quarter ended December 2020 from Rs 23,092 crore in the year-ago period.

Infosys increased its FY21 revenue growth forecast to 4.5-5% in constant currency terms from its previous guidance of 2-3% growth.

“We achieved the highest large deals win in our history with the deal value of USD 7.1 billion. This includes the largest deal in our history,” said Infosys CEO and Managing Director Salil Parekh.

He added that overall large deal value for the nine-month period of this financial year was at over USD 12 billion, and the net new large deal value for the same period was over USD 8 billion which positioned the company “very strongly” for the quarters ahead.

Parekh said the strong performance has prompted the company to increase its revenue growth guidance for the full year from 2-3% to 4.5-5% in constant currency terms.

The stellar performance by Infosys comes days after an equally impressive show by larger rival Tata Consultancy Services (TCS).

TCS reported a 4.1 per cent quarter-on-quarter revenue growth — its strongest third quarter growth in nine years –on the back of healthy deal closures.

Its topline rose 5.4% to Rs 42,015 crore in the December 2020 quarter over the corresponding period last fiscal, while net profit was up 7.2% to Rs 8,701 crore in the reported quarter.

Wipro also registered strong growth in its third quarter numbers.

Infosys’ digital revenues during the quarter crossed 50% of the total revenue, clocking YoY growth of 31.3% on constant currency basis.

Parekh said the scale of new client partnerships with leading global companies such as Vanguard, Daimler and Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys.

He also noted that the large deals are coming from across verticals and geographies.

“Large deals we are seeing it across different industries today. We have seen good traction in financial services, communications, high-tech, manufacturing, so it’s quite broad based. In terms of geography too, we see demand across different geographies,” Parekh added.

At the end of the December 2020 quarter, Infosys had 2,49,312 employees, with voluntary attrition at 10 per cent. About 97% of the company’s staff continues to work from home amid the pandemic.