Buoyed by a strong set of third quarter numbers, robust deal pipeline and a sound demand environment, Infosys has further raised its revenue guidance for the current fiscal to 19.5 to 20% from the earlier 16.5 to 17.5% range.
The tech major reported a net profit of ₹5,809 crore, a 12% rise over the year-earlier period. Revenue rose 23% to ₹31,867 crore.
“Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation,’’ Salil Parekh, CEO and MD, told the media.
“[The] overall demand environment remains strong,” he said. “Our deal pipeline is larger than anytime we have in the past. We expect healthy technology spend to continue with large enterprises progressing on digital transformations.”
Infosys said it continued to see momentum in the large-deal space with total contract value (TCV) at $2.53 billion in Q3. In the third quarter, the company reported an operating margin of 23.5%, 10 basis points lower than the previous quarter while it maintained its operating margin guidance of 22-24% for the whole fiscal.
“It seems Infosys is getting some pricing benefits,” said Ashis Dash, research analyst, Sharekhan by BNP Paribas “The company revised its revenue growth guidance, which is higher than our expectations.’’
Infosys reported employee attrition of 25.5%, some 540 basis points higher than the last quarter.
The company, however, said it was an industry issue and not a company-specific problem.