Infosys Share Q3 Results

Infosys

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:43:30+05:30

India’s second largest software company and the fourth most valuable company in terms of market capitalization, Infosys, also announced its December 2021 quarter results on 12 January. The broad takeaway was that while the revenues were up, the operating margins took a hit on account of higher operating costs and in the case of Infosys, the OPM fall was almost to the tune of 192 bps.

Here are the quarterly numbers of Infosys

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 31,867

₹ 25,927

22.91%

₹ 29,602

7.65%

Operating Profit (Rs cr)

₹ 7,484

₹ 6,589

13.58%

₹ 6,972

7.34%

Net Profit (Rs cr)

₹ 5,809

₹ 5,197

11.78%

₹ 5,421

7.16%

Diluted EPS (Rs)

₹ 13.83

₹ 12.23

 

₹ 12.85

 

OPM

23.49%

25.41%

 

23.55%

 

Net Margins

18.23%

20.04%

 

18.31%

 

 

Revenues were up 22.91% for the Dec-21 quarter at Rs.31,867 crore on a consolidated basis. Even on a sequential basis, the revenues were up by 7.65%, which is relatively healthy. BFSI accounted for one-third of the total revenues and about one third of the segment operating profits too. However, it was retail with operating margins of 35.3% stole the show.

Size of deals matters a lot in the IT space. During the quarter, Infosys signed mega deals worth $2.53 billion. At the same time, the all-important digital revenues grew by a healthy 42% YoY. In terms of revenue share, digital accounts for 58.5% of Infosys revenues, up 840 bps on a YoY basis and over 240 bps on a sequential basis.

Financial services of BFSI was stable at 31.5%,while the share of retail stood at 14.5%. Among other  sectoral practices, communications had a share of 12.5%, energy 11.7% and manufacturing 11.3%. North American dominated the regional revenue mix with 61.8% of the revenue share while Europe and UK account for 25% of revenues. Infosys currently has 1,738 clients  with over 50% being 1 million dollar plus clients and 37 clients in the big ticket bulge bracket of $100 million plus.

Operating profits were up 13.58% at Rs.7,484 crore but operating margins narrowed by 192 bps on YoY basis. Net profits were up 11.78% at Rs.5,809 crore on good traction in high value clients. Higher operating costs dented operating margins along expected lines.

PAT margins narrowed from 20.04% in Dec-20 quarter to 18.23% in Dec-21 quarter. Overall, it was a quarter of solid top line growth but operating margins coming under intense pressure due to higher sub-contracting and manpower costs.


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