Arun Kumar Rao
Bengaluru : IT major Infosys announced on Thursday its Q3 financial results, with net profit up over 13 per cent year-on-year to Rs 6,586 crore in comparison to Rs 5,809 crore in the corresponding quarter last year. The company’s consolidated revenue from operations also increased 20.2 per cent to Rs 38,318 crore. The attrition rate for Infosys dipped to 24.3% on a 12-month trailing basis, from 27.1% quarter ago. Margin has dipped by 200 basis points on year, but largely stable sequentially.
Infosys’ performance in the quarter reported better than its larger rival, Tata Consultancy Services Limited, (TCS) which missed profit estimates and flagged challenges in Europe as clients tightened spending due to the ongoing global economic slowdown.
Salil Parekh, Infosys, CEO and MD said, the revenue growth was strong for the quarter, with both digital business and core services growing. “This is a clear reflection of our deep client revevance, industry-leading digital,cloud, and automation capabilities, and the unrelenting dedication of out employess”, Parekh said.
“As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness” Parekh added.
Nilanjan Roy, Chief financial officer (CFO) said, “Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters,”. “Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term,” he added.
Capital allocation:– Infosys informed bourses that it started share buyback program through open market route from December 7 and till date, it has bought back 31.3 million shares worth Rs 4,790 crore or 51.5 per cent of total authorisation of Rs 9300 crore at an average price of approximately Rs 1,531 per share (compared to maximum Buyback price of Rs 1,850 per share).
Manpower details of Infosys said Total Head count 346,845, up 1,627 QoQ.
