Infosys raised revenue growth estimates for the current fiscal to the 19.5-20% range on the back of a strong set of third quarter numbers, robust deal pipeline and a sound demand environment. This compares with the earlier projection of 16.5-17.5% revenue growth.
The tech major reported a 12% rise in net profit to ₹5,809 crore from a year earlier. Revenue rose 23% to ₹31,867 crore.
“[The] overall demand environment remains strong,” said Salil Parekh, CEO and MD. “Our deal pipeline is larger than anytime we have seen 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 at $2.53 billion in the quarter. In the third quarter, the company reported an operating margin of 23.5%, 10 basis points lower than the previous quarter while it maintained operating margin guidance of 22-24% for the 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%, 540 basis points higher than the previous quarter.
It pointed out that attrition was an industry-wide issue. CFO Nilanjan Roy said: “We have seen some stabilisation in Q3 attrition and hope to see improvement in the coming quarters. We... have increased our global graduate hiring programme to over 55,000... in FY22.”