Infosys Q3 net profit up 38.3% to Rs 5,129 crore

Beating market expectations, India's second largest IT services exporter Infosys on Friday reported a Rs 5,129-crore consolidated net profit for the third quarter ended December 31, 2017.

This translates into a growth of 38.3% year-on-year compared with Rs 3,708 crore for the corresponding quarter last year. The jump in profits has been aided 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.

Sequentially, Infosys clocked 37.6% growth in net profit compared with Rs 3,726 crore for the second quarter ended September 30, 2017.

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. The revenues of the company jumped by 3% to Rs 17,794 crore, from Rs 17,273 crore.

Interacting with the media for the first time after taking over as CEO and MD of Infosys on January 2, Salil S Parekh 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% year-on-year growth and 24.3% operating margin with $593 million of free cash flow."

On the estimates front, the company has maintained that its revenue will grow at 2.1%-3.1% in rupee terms based on the exchange rates as of
December 31.