New Delhi, Jan 16 IT major Infosys on Thursday reported 11.5 per cent increase in net profit at Rs 6,806 crore in the third quarter (Q3) this fiscal, from Rs 6,106 crore in the year-ago period.
The digital services and consulting leader delivered strong and broad-based performance with $4,939 million in Q3 revenues, growth of 1.7 per cent sequentially and 6.1 per cent (year-on-year) in constant currency.
Operating margin for Q3 was at 21.3 per cent, an increase of 0.2 per cent sequentially. Free cash flow for Q3 was highest ever at $1,263 million, growing 90 per cent year on year, the company said in a statement.
“Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year on year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives,” said Salil Parekh, CEO and MD.
“This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead”, he added.
Infosys' shares on BSE closed 1.5 per cent lower at Rs 1,920 apiece, ahead of the quarter results.
The company has raised its CC revenue growth guidance for FY25 to 4.5-5 per cent for the third quarter in a row, as against its previous guidance of 3.75-4.5 per cent.
“We had another quarter of strong performance with revenue growth across segments and operating margin expansion, leading to 11.4 per cent EPS growth year on year in rupee terms,” said Jayesh Sanghrajka, CFO.
“Our structured approach to operating margin expansion yielded more results in Q3, particularly due to benefits from improving realization and scale benefits” Sanghrajka added.
Infosys won large deal total contract value (TCV) worth $2.5 billion, of which 63 per cent is net new, compared with $2.4 billion clocked in the second quarter. The number of active clients stood at 1,876.
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