Infosys Q3FY18 net profit grows 38% at Rs 5,129 crore

The company posted consolidated net profit of Rs 5,129 crore, rising by 38.32% from Rs 3,708 crore in the corresponding period of the previous year.

Infosys reports a whopping 38% year-on-year (YoY) rise in consolidated net profit. Image source: Reuters

Key highlights:

Infosys posted consolidated net profit of Rs 5,129 crore

Consolidated revenue came stood at Rs 17,729 crore

Operating profit was at Rs 12,676 crore for 9 months period of FY18

IT giant Infosys surpassed analysts' estimate in its third quarter result for the financial year 2017-18 (Q3FY18) by reporting a whopping 38% year-on-year (YoY) rise in consolidated net profit.

The company posted consolidated net profit of Rs 5,129 crore, rising by 38.32% from Rs 3,708 crore in the corresponding period of the previous year.

Consolidated revenue came stood at Rs 17,729 crore, witnessing sequential rise of 2.63% as against Rs 17,273 crore a year ago in the same period.

A Bloomberg poll projected Infosys net profit and revenue at Rs 3,610 crore and Rs 17,842 crore respectively in Q3FY18.

With this, for the nine months ended period of FY18, Infosys net profit has grown by 14.79% yoy to Rs 12,339 crore, while revenue jumped by 2.09% yoy to Rs 52,439 crore.

Operating profit, however, was at Rs 12,676 crore for nine months period of FY18, registering sequential decline of 0.1% yoy.

Salil Parekh, CEO & MD of Infosys 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 US$ 593 million of free cash flow.”

Infosys' contant currency revenue growth came in at 5.6% as on December 2017.

For the fiscal year ending March 2018, Infosys expects to grow between 5.5% - 6.5% in constant currency. While it expects to grow between 2.1% - 3.1% in INR terms based on the exchange rates of December 2017.

On geographical basis, North America contributed 60.4% growth, Europe gave 24.4%, while India and the rest of the world contributed 3% and 12.2% growth respectively in total revenue.

Infosys total employees stood at 2,01,691 as on December 2017, higher from 1,98,440 employees as on September 2017 and 1,99,763 employees in December 2016.

Pravin Rao, COO of Infosys said, “During the quarter, we provided compensation increases and higher variable payouts to our employees. Our investments in employees continues to deliver results as reflected in lower attrition.”

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

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