Infosys, the country’s second-largest software services company, reported its Q3 earnings today with a net profit of Rs. 5129 crore, higher by a whopping 38% as against Rs 3,726 crore in previous quarter mainly due to tax reversal.
“During the quarter, on account of a conclusion of an Advance Pricing Agreement with the US Internal Revenue Service, the company has reversed income tax expenses provision of USD 225 million (Rs 1,432 crore) which pertains to previous periods which are no longer required,” explained the company in its filing.
Rupee revenue of the company from operations grew by 1.3% sequentially and is largely in line with the estimate at Rs. 17794 crores. The revenue growth in dollar and constant currency terms is reported at 1% and 0.8% respectively on a quarter on quarter basis. Salil Parekh, CEO & MD who took charge of the company this year said, “Q3 performance is strong.
We had 8 percent year-on-year growth and 24.3 percent operating margin with USD 593 million of free cash flow”. Operating margin for the company stood better at 24.3% for the third quarter ending December as against the estimated 24.1%. The company maintains its constant currency revenue growth guidance at 5.5-6.5% for the full year and dollar revenue guidance at 6.5-7.5% while EBIT margin is kept at 23-25% for FY18.
Attrition rate at the company also declined during the quarter to 15.8% as against 17.2% in the earlier quarter. The company said that utilization not taking into account trainees was also an all-time high of 84.9% for Q3.
IT giant, Infosys on Friday announced the net profit of Rs 5,129 crore for the December quarter over the reversal of tax provisions of approximately Rs 1,432 crore.
By these figures, Infosys had witnessed a jump of 37.6 percent on a quarter-on-quarter basis and 38.3 percent on a year-on-year basis.
In September quarter, Infosys had reported a net profit of Rs 3,726 crore. For Q3, the firm posted revenue of Rs 17,794 crore.
Just like TCS, Infosys Q3 profit and revenue numbers were in line with the estimates.