Infosys Q3 results: IT major reports net profit of Rs 6,106 crore, down 7% YoY – Times of India

Infosys Q3 results: IT giant Infosys reported a consolidated net profit of Rs 6,106 crore for the quarter ended December 2023, showing a 7% decrease compared to the previous year’s quarter. This figure was slightly below the estimated profit of Rs 6,140 crore according to ET NOW poll.
The revenue from operations in the third quarter saw a 1% increase to Rs 38,821 crore, as opposed to Rs 38,318 crore in the same quarter last year.Infosys has revised its revenue guidance for constant currency terms to 1.5%-2% from the previous 1%-2.5%.
For the fiscal year 2024, the company has raised its revenue estimate to 1.5% but has slightly lowered the upper end to 2%. However, Infosys has maintained its operating margin target of 20-22%.
During the third quarter, the revenue in constant currency terms experienced a 1% YoY decline. The operating margins for the same period also fell by 1% YoY.
In the December quarter report, the IT major secured deals amounting to $3.2 billion Total Contract Value (TCV), with 71% stemming from newly acquired deals.
CEO and MD, Salil Parekh, expressed satisfaction with the third-quarter performance, highlighting resilience. He attributed the large deal wins to the strength of their portfolio, encompassing generative AI, digital solutions, cloud services, and initiatives focused on cost, efficiency, and automation.
Financially, the third quarter demonstrated steady cash generation, with Free Cash Flow (FCF) witnessing a YoY growth of 17% to reach Rs 5,548 crore. The FCF conversion to net profit for Q3 stands at an impressive 90.6%.
Infosys also reported a notable reduction in attrition, which declined to 12.9% on a 12-month trailing basis. This is a notable improvement from 14.6% in the September 2023 quarter and a substantial drop from 24.3% a year ago.

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