Infosys clocks 38% rise in net profit at Rs 5,129 crore in Q3

Infosys clocks 38% rise in net profit at Rs 5,129 crore in Q3
Beating market expectations, Bengaluru-based, IT giant Infosys on Friday reported a net profit of Rs 5,129 crore for the third quarter ended December 31, 2017, up 38% as compared with Rs 3,708 crore for the corresponding quarter last year.

The company had clocked a net profit of Rs 3,726 crore for the second quarter ended September 30, 2017.

The jump in profits has been backed by the reversal of tax provisions worth Rs 1,434 crore, arising out of Advance Pricing Agreement (APA) signed by the company with US Internal Revenue Service (USIRS).

However, the gross profit of the company declined to Rs 6,344 crore, as against Rs 6,433 crore in the corresponding quarter last year. While the revenues of the company jumped  by 3%% to Rs 17,794 crores, from Rs 17,273 crores.

On the geographical front North America (60.4%) has been the biggest contributor to the company’s revenues in the quarter, followed by Europe (24.4%), and India (3.0%).

Based on the client industry vertical, Banking and Financial Services, Insurance (BFSI) was the largest contributor to the revenues with a contribution of 33.1%, followed by Retail and Life Sciences (22.7%), Manufacturing and Hi-Tech (21.8%), and Energy, Utilities, Communications and Services (22.4%), during the quarter.

The amount of per share dividend recognised as distributions to equity shareholders for the nine months ended December 31, 2017 includes final dividend of Rs 14.75 per equity share and an interim dividend of Rs 13 per equity share. The earnings per share of the company grew by 39%, and stood at Rs 22.55, as against Rs 16.22 in the corresponding quarter last fiscal.

“We are progressing towards stability and are well positioned to serve our clients in the new areas of demand” Salil Parekh, CEO and MD, Infosys said.

Meanwhile, Rajesh K. Murthy, President, has resigned from the company citing personal reasons.

The company has also acquired 79 new clients during the quarter, taking the number in the segment to 1,191, as against 1,173 in the previous quarter.

On the estimates front, the company has maintained its revenue guidance at 5.5%-6.5% in constant currency.

“We had 8% year-on-year growth and 24.3% operating margin with US$ 593 million of free cash flow,” Parekh added.

The company's shares closed 0.26% higher, at Rs 1,078.40 on Bombay Stock Exchange.
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