Infosys reports nearly 17% rise in Q3 profit

Bengaluru-based IT major Infosys has clocked a robust growth of 16.6 per cent in its net profit, outperforming its rival Tata Consultancy Services (TCS) yet again.

The company clocked a bottom-line of Rs 5,197 crore in the December quarter, compared to Rs 4,457 crore in the corresponding quarter. On contrary, its peer, TCS had reported a 7 per cent year-on-year increase in net profit for the quarter end December 31 at Rs 8,701 crore.

While this heavy surge in the earnings has been partially contributed by 3.5 per cent dip in the administrative cost, a substantial chunk of this growth has come right from the top -- in form of double-digit growth in the topline.

Infosys Q3 revenues grew year-on-year by 12.3 per cent to Rs 25,927 crore from Rs 23,092 crore in the corresponding quarter last year.

As a result of higher revenue growth and lower operating expense, the operating margin of the company continued to grow, increasing 10 basis points sequentially to 25.4 per cent. Prior to the current financial year, the margins of the company were under stress.

The revenue from the digital offerings for the company grew by by 33.6 per cent to $1,761 in the quarter. The vertical, which is one of the priority areas under CEO Salil Parekh, now makes up 50.1 per cent of the company's revenues.

Among the sectoral verticals, revenue from all the sectors saw growth, except for manufacturing -- which dipped by 1.9 per cent.

The large deal signings by the IT major stood at an unprecedented $7.13 billion,

“The Infosys team has delivered another quarter of excellent results. Execution of client relevant strategy focused on digital transformation continues to drive superior growth, well ahead of the industry. 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. The commitment and skills of our employees to support and drive the digital journey of clients are matters of great pride for me”, said Salil Parekh, CEO and MD.

The attrition rate in the company rose during the quarter to 10 per cent -- indicating reduced freeze on lateral hiring among IT companies.