Infosys Q3 Results: Net Profit Rises 16.6% Beating Estimates, Revenue Up 12.3%

Infosys Q3 FY21 Results: Infosys Limited, the country’s second-biggest software services firm by market value, on Wednesday, reported a 16.6 per cent rise in the October-December quarter profit, tracking large deal wins as demand for its digital services grew amid the Covid-19 pandemic. The Bengaluru-based company’s consolidated net profit climbed to ₹ 5,197 crore from ₹ 4,457 crore a year earlier, beating street estimates. The revenue from operations rose 12.3 per cent to ₹ 25,927 crore. Infosys said it expects the annual revenue in the financial year to end-March 2021 to rise between 4.5 per cent and 5 per cent in constant currency terms, higher than two per cent to three per cent forecast earlier.

The October-December quarter is usually weak for the country’s IT sector, but it strengthened in 2020 as global clients invested more in digital services to support the paradigm shift of remote working amid the coronavirus pandemic. During the third quarter, Infosys Limited won several deals including a cloud partnership with German automaker Daimler AG as well as a strategic partnership with British aero-engine maker Rolls-Royce.

Analysts on average had expected a profit of ₹ 5,050 crore, according to Refinitiv data quoted in a Reuters report. The company’s larger rival Tata Consultancy Services (TCS) reported a higher third-quarter profit last week, beating estimates. TCS net profit rose to Rs 8,701 crore in the three months to December 31, 2020, from ₹ 8,118 crore a year earlier. Infosys’ smaller rival Wipro also reported a consolidated net profit of 20.4 per cent to ₹ 2,968 crore. Wipro’s dollar revenue growth was reported to be the highest in 36 quarters.

Source: NDTV (Edited by Nikita Prasad (With Inputs From Reuters)