Infosys Q3 FY21 results: Infosys Limited, the country’s second-largest software services company by market value, on Wednesday reported a 16.6% increase in quarterly profit from October to December, following big wins as the demand for its digital services was increasing amid the Covid-19 pandemic. The consolidated net profit of the Bengaluru-based company climbed to Rs 5,197 crore from Rs 4,457 crore a year earlier, beating the estimates of the Street. Operating income rose 12.3 percent to Rs 25,927 crore. Infosys said it expects annual revenue for the fiscal year through the end of March 2021 to increase 4.5% to 5% in constant currencies, more than 2% to 3% forecast earlier. (Read also: Infosys posts 14% profit increase in second quarter and announces salary hikes from January)
The October-December quarter is generally weak for the country’s IT sector, but it strengthened in 2020 as global customers invest more in digital services to support the paradigm shift of remote work amid the pandemic of coronavirus. During the third quarter, Infosys Limited won several contracts, including a cloud partnership with German automaker Daimler AG as well as a strategic partnership with British aircraft engine manufacturer Rolls-Royce.
Analysts on average expected a profit of Rs 5,050 crore, according to data from Refinitiv cited in a Reuters report. The company’s biggest rival, Tata Consultancy Services (TCS), last week reported higher third-quarter profit, beating estimates. TCS’s net profit rose to Rs 8,701 crore in the three months ending December 31, 2020, from Rs 8,118 crore a year earlier. Infosys’ smaller rival Wipro also reported a consolidated net profit of 20.4 percent to Rs 2,968 crore. Wipro’s dollar revenue growth was reportedly the highest in 36 quarters.
At 4:00 p.m., shares of Infosys closed 1.16 percent higher at Rs 1,387.70 each on BSE.