Infosys, India’s No. 2 IT major, today reported a net profit of Rs 5,129 crore for the quarter ended December 31, 2017, aided by reversal of tax provisions of approximately Rs 1,432 crore. This is a jump of 37.6 per cent on a quarter-on-quarter basis and 38.3 per cent on a year-on-year basis. Infosys had reported a net profit of Rs 3,726 crore for the quarter ended September 30, 2017. In the December quarter, Infosys posted revenue of Rs 17,794 crore. The numbers were in line with the Street’s estimates.
Infosys maintained its FY18 revenue guidance at 5.5-6.5 per cent in constant currency. Its Q3 operating margin improved to 24.3 per cent, from 24.2 per cent in the September quarter. Attrition on a standalone basis declined to 15.8 per cent from 17.2 per cent in September quarter. In dollar terms, Q3 revenue grew 8 per cent year-on-year and 1 per cent sequentially to $ 2,755 million.
Commenting on the Q3 earnings, Salil Parekh, CEO and MD of Infosys, said: “It is a privilege for me to be appointed as the CEO & MD of Infosys, helping our clients navigate the digital future and employees build new skills and capabilities. Our Q3 performance is strong. We had 8 per cent year-on-year growth and 24.3 per cent operating margin with $593 million of free cash flow.”
“We are progressing towards stability and are well positioned to serve our clients in the new areas of demand,” he added.
This is the first quarterly results since Salil Parekh took charge as the new CEO and MD at Infosys on January 2.
COO Pravin Rao said: “Increased adoption of our digital offerings and new services helped stabilize price realization. We were able to grow client relationships across revenue categories.”
“During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continue to deliver results as reflected in lower attrition,” Mr Rao added.
CFO MD Ranganath said that the company “successfully executed the share buyback of Rs. 13,000 crore in line with our capital allocation policy.”
Infosys shares today ended 0.26 per cent higher at Rs 1,078 on the BSE. The IT major announced its earnings after market hours today.