Infosys clocks net profit of Rs.3,708 crore for Q3

Bengaluru-based IT giant Infosys has clocked net profit of Rs 3,708 crore for the quarter ended December 31, 2016, up 7%, compared with Rs 3,465 crore for the corresponding quarter of last year.

The quarter also saw the company reaching the milestone of $10 billion of revenue (in USD terms) for the first time in a calendar year (Last Twelve Months ‘LTM’).The gross profit of the company increased to Rs 5,154 crore, against Rs 4,761 crore in the corresponding quarter of last year. While the revenues of the company jumped 8.6% to Rs 17,273 crore, from Rs 15,902 crore last year.

On the geographical front, North America (62%) has been the biggest contributor to the company’s revenues in the quarter, followed by Europe (22.2%), and India (3.4%).

Based on the client industry vertical, Banking and Financial Services, Insurance (BFSI) was the largest contributor to the revenues with a contribution of 33.3%, followed by Retail and Life Sciences (23.5%), Manufacturing and Hi-Tech (22.5%), and Energy, Utilities, Communications and Services (20.7%), during the



quarter.

The company paid interim dividend, including tax of Rs 3,029 crore, in the quarter. The earnings per share of the company grew by 7%, and stood at Rs 16.22, against Rs 15.16 in the corresponding quarter last fiscal.

“Taking into account seasonal and other additional headwinds for the quarter, our Q3 revenue performance was broadly in line with our expectations,” Infosys Chief Executive Officer and Managing Director Vishal Sikka said.The company has also acquired two new clients in the over $75-million segment during the quarter, taking the number in the segment to 32, against 30 in the previous quarter.

“Our annual client survey results show highest customer satisfaction since we started the survey 12 years ago and increased adoption of Zero Distance and lowered attrition, especially amongst top performers — these are some of the key indicators of the growing creative confidence of Infoscions,” said Sikka.

On the estimates front, the company has revised its revenue guidance to 8.4% to 8.8%, from 8% to 9% in constant currency.