Infosys Q3 net profit up 16.6% to Rs 5,197 crore, revenue grows 6.6%

Bengaluru-based IT major Infosys has reported its highest sequential growth in eight years, with net profit growing 16.6% to Rs 5,197 crore in the October-December quarter (Q3). Revenues grew by 6.6% to Rs 25,927 crore with digital revenues growing by 31.3% and overall digital revenue crossed more than half of total revenues.

The company also saw large deal wins with the total contract value coming in at an all-time high of $7.13 billion. One significant deal win was a strategic partnership with automotive major Daimler AG to support a technology-driven IT infrastructure transformation. This, CEO Salil Parekh said, was the largest deal win in the history of Indian IT.

In terms of guidance for revenue for the financial year FY21, Infosys increased its revenue growth expectation to 4.5%-5.0% in constant currency terms, while it increased margin guidance increases to 24.0%-24.5%.

The fourth quarter (January-March) will also see Infosys rolling out annual salary hikes across the board. In India, currently 98.3% of the company’s workforce is working from home, Infosys said.

The company also saw a decline in voluntary attrition, which is the number of employees resigning from the company, to 10.0% from 15.8% in the same quarter last year. In the current financial year, Infosys said it has hired 17,000 employees, as is looking at hiring 24,000 employees from college campuses in FY22.

“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 company also saw a decline in voluntary attrition, which is the number of employees resigning from the company, to 10.0% from 15.8% in the same quarter last year.

“The resilience of Infosys has been severely tested over the past several quarters and I am delighted with our response marked by strong revenue performance, large deal wins, healthy operating metrics and continued low attrition”, Pravin Rao, COO said in a statement.

Infosys also said that it reached a significant milestone in its ESG journey by becoming carbon neutral in 2020, thirty years ahead of 2050, the timeline set by the Paris Agreement. Infosys reiterated its commitment to Environment, Social and Governance causes by announcing its ESG 2030 vision and ambitions.