Infosys Q3 Results FY2023, Net Profit at Rs. 6586 crores

On 12th January 2023, India’s one of the leading IT companies, Infosys announced its quarterly results.

Key Highlights:

In INR:

- Revenues in constant currency terms grew by 13.7% YoY and 2.4% QoQ 
- Reported revenues at Rs. 38,318 crores, a growth of 20.2% YoY 
- Digital revenues at 62.9% of total revenues, YoY constant currency growth of 21.7% 
- The company reported a net profit of Rs. 6586 crores
- Operating margin at 21.5%, a decline of 2.0% YoY and stable QoQ 
- Basic EPS at Rs. 15.72, growth of 13.4% YoY 
- Free cash flow at Rs. 4,741 crores, a decline of 12.2% YoY; free cash flow conversion at 72.0% of net profit
- The company has started a share buyback program through an open market route from December 7, 2022, and to date, has bought back 31.3 million shares worth Rs. 4,790 crores or 51.5% of the total authorization of Rs. 9,300 crores at an average price of approx. Rs. 1,531 per share 

In USD:

- Revenues in constant currency terms grew by 13.7% YoY and 2.4% QoQ.
- Reported revenues at $4,659 million, a growth of 9.6% YoY 
- Digital revenues at 62.9% of total revenues, YoY constant currency growth of 21.7% 
- Operating margin at 21.5%, a decline of 2.0% YoY and stable QoQ 
- Basic EPS at $0.19, growth of 3.3% YoY 
- Free cash flow at $576 million, a decline of 19.9% YoY; Free cash flow conversion at 72.0% of net profit

Partnerships:

- Centric Brands has selected Infosys to be a strategic technology partner to provide a range of digital, IT, business operations and transformation services
- Infosys helped develop a cloud-based platform to digitize and automate manual processes at Envision AESC, a world-leading battery technology company’s Electric Vehicle (EV) battery manufacturing plants.
- Infosys and Microsoft modernized Spark New Zealand’s corporate functions to enhance business resilience, operational simplicity, workplace agility, and customer experience.
- Infosys collaborated with CIRCOR, one of the world’s leading providers of mission critical flow control products and services for the Industrial, Aerospace & Defense markets, to help transform its IT landscape and modernize its IT infrastructure.
- Avon, part of Natura Group, entered a five-year strategic collaboration with Infosys to advance its digital transformation journey, implement cognitive operations, drive continuous innovation, and help in better serving its customers
- Conagra has entered into a five-year strategic partnership with Infosys to innovate its IT operations. Conagra and Infosys will be implementing product based cognitive-first delivery model, with focus on improving operational excellence, drive continuous innovation, and most importantly improve the quality of service for Conagra’s customers.

Commenting on the results, Salil Parekh, CEO and MD said: “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. 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”