Infosys raises revenue guidance to 19.5-20%

Bengaluru: IT services major Infosys delivered a strong set of third quarter performance both in revenue and deal pipeline front, prompting the company to raise its revenue guidance for the current financial year. Infosys has raised its revenue guidance to 19.5-20 per cent for the current financial year from earlier 16.5 to 17.5 per cent range. Robust deal pipeline, stabilizing attrition and sound demand environment are seen as the factors behind the company's growth guidance.

The Bengaluru-headquartered firm reported consolidated net profit at Rs 5,809 crore, 12 per cent rise as compared to corresponding period last year. Consolidated revenue rose 23 per cent to Rs 31,867 crore as against Rs 25,927 crore a year ago. Revenues in dollar term were at $4.25 billion for the quarter, which was a growth of 7 per cent sequentially in constant currency term. The company delivered a strong Q3 performance with industry leading growth numbers in a seasonally weak quarter. "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.

This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations", said Salil Parekh, CEO and MD.

"Overall demand environment remains strong. Our deal pipeline is larger than anytime we have in the past," he added.

Infosys continued to see momentum in the large deal space with its total contract value (TCV) at $2.53 billion in Q3. In the third quarter, the IT major reported an operating margin of 23.5 per cent, 10 basis points lower than the previous quarter. The company maintained its operating margin guidance of 22-24 per cent for the whole fiscal.

However, the company continued to see high employee attrition as it reported an attrition of 25.5 per cent, which was 540 basis points higher than the last quarter. "We have seen some stabilisation in the attrition in the third quarter and hope it to improve in coming quarters. We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions," said Nilanjan Roy, Chief Financial Officer of Infosys.

During the third quarter, the company added 12,450 employees on net basis to take its total employee count at 292,067.