Infosys Q3 Result: Infosys Ltd reported a 7.3% YoY decline in net profit for the December quarter, amounting to Rs 6,106 crore compared to Rs 6,586 crore in the same quarter last year. The revenue for the quarter, however, showed a modest growth of 1.3% YoY, reaching Rs 38,821 crore.
Analysts had projected a 5-8% de-growth in profit, and Infosys delivered results in line with these expectations. The operating margin for the quarter stood at 20.5%, down by 100 basis points from the previous year.
In terms of dollar revenue, Infosys reported $4,663 million in Q3 revenues, reflecting a 1% decline in constant currency terms, both YoY and sequentially. Large deal wins for the quarter amounted to $3.2 billion, with 71% categorized as net new. The total contract value (TCV) stood at $7.7 billion in the September quarter and $2.3 billion in the June quarter.
Salil Parekh, CEO and MD of Infosys commented on the resilient performance, highlighting strong large-deal wins and the relevance of their portfolio, spanning generative AI, digital, cloud, and automation.
The company revised its FY24 revenue guidance to 1.5-2%, down from the previous range of 1-2.5%. The Ebit margin guidance remains unchanged at 20-22%. Infosys had adjusted its guidance in the last two quarters, reflecting the dynamic nature of the industry.
In a strategic move, Infosys announced the acquisition of InSemi, a semiconductor design and embedded services provider. This move aims to strengthen Infosys’ Engineering R&D capabilities and aligns with the company’s commitment to co-create with global clients in their digital transformation journey.
Despite the profit decline, Infosys remains focused on adapting to industry challenges, leveraging its diverse portfolio, and investing in strategic acquisitions to enhance its capabilities in the evolving IT landscape.
