Infosys Q3 Results: Company Reports 13.7% Growth, Revises Revenue Guidance for FY23 to 16.0-16.5%

Infosys Q3 results are out, and the company has reported a strong performance with year-on-year growth at 13.7% and sequential growth at 2.4% in constant currency. Year on year growth was in double digits for most business segments and geographical regions in constant currency terms. Large deal TCV for the quarter was the strongest in the last 8 quarters at $3.3 billion. Digital comprised 62.9% of overall revenues and grew at 21.7% in constant currency. Operating margin for the quarter remained resilient at 21.5%. FY23 revenue guidance revised to 16.0%-16.5%. FY23 operating margin guidance retained at 21%-22%.

“Our revenue growth was strong in the quarter, with both digital business and core services growing. This is a clear reflection of our deep client relevance, industry-leading digital, cloud, and automation capabilities, and the unrelenting dedication of our employees”, said Salil Parekh, CEO and MD. “As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients. Our end-to-end capabilities and global scale make us a preferred choice as clients look at consolidating vendors. We remain focused on helping businesses accelerate their digital agenda to uncover new value and growth, as well as improve operational and cost effectiveness”, he added.

Infosys Q3 Results Highlights

• Revenues in CC terms grew by 13.7% YoY and 2.4% QoQ.
• Reported revenues at Rs 38,318 crore, growth of 20.2% YoY.
• Digital revenues at 62.9% of total revenues, YoY CC growth of 21.7%.
• Operating margin at 21.5%, decline of 2.0% YoY and stable QoQ.
• Basic EPS at Rs 15.72, growth of 13.4% YoY.
• FCF at Rs 4,741 crore, decline of 12.2% YoY; FCF conversion at 72.0% of net profit.

“Operating margins in Q3 remained resilient due to cost optimization benefits which offset the impact of seasonal weakness in operating parameters”, said Nilanjan Roy, chief financial officer. “Attrition reduced meaningfully during the quarter and is expected to decline further in the near-term”, he added.