Infosys reported better than expected quarterly earnings beating all Street expectations. The information technology firm has reported consolidated net profit of Rs 5,809 crore for the three months ending 31 December, 2021 (Q3FY22), registering an increase of 12 percent from Rs 5,197 crore in the same period last year.
The IT firm also increased its revenue growth guidance for FY22 to 19.5-20 percent, a regulatory filing said.
The Bengaluru-based company's revenue grew 22.9 percent to Rs 31,867 crore in the quarter ended December 2021 from Rs 25,927 crore in the year-ago period, it added.
"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. This is reflected in an upgrade in our revenue guidance to 19.5 percent-20.0 percent for FY22. We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations”, said Salil Parekh, CEO and MD. “I am immensely proud of the relentless commitment of our employees during these challenging times and grateful for their extraordinary efforts in delivering success for our clients”, he added.
Better-than-expected Quarterly earnings
Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd, said, Infosys reported better than expected quarterly earnings beating all street expectations. The company hiked growth guidance for FY22 to 19.5 percent-20 percent from 16.5 percent-17.5 percent which was above our expectations. Constant Currency growth also rose from 6.3 percent to 7 percent against 3.5 percent Street expectation and net profit growth performed better than street expectations when compared to same quarter last year. Large deals stood at $2.53 bn giving strong growth visibility.
"Based on the results, we expect the stock would react positively up from today closing of Rs 1876 and we are overall optimistic on the stock with medium to long term horizon with a technical target above Rs 2000 mark in 6-12 months period."
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