Infosys revised its guidance upwards as it reported better-than-expected revenue for Q3 FY23 on strong bookings. The IT services company said on Thursday it sees its FY23 revenue guidance in the range of 16 per cent to 16.5 per cent and maintained that its operating margin guidance will be at 21-22 per cent.
Net profit for the Q3 FY23 came in at Rs 6,586 crore up 13.4 per cent y-o-y and 9.4 per cent sequentially. Revenue for the third quarter of FY23 grew 20.2 per cent y-o-y at Rs 38,318 crore. Sequentially, revenue was up 4.9 per cent.
The biggest positive for Infosys in Q3 is the total contract value, which came in at $3.3 billion, up from 2.7 billion in Q2 FY23. This shows that the company continues to see momentum in the market for its services.
“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 of the Banaglore-headquartered company.
“As reflected in the large deals momentum, we continue to gain market share as a trusted transformation and operational partner for our clients,” he said.
The other big positive was the falling attrition. Infosys reported attrition for the quarter at 24.3 per cent, down from the previous quarter’s 27 per cent. Attrition was down even on a year on year basis as well. Attrition in Q3 FY22 was at 25.5 per cent.
“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.”
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