Particulars (In Rs. Cr.) Q3FY21 Q2FY21 Q3FY20 QoQ % YoY%
Revenue from Operations 25,927 24,570 23,092 5.52% 12.28%
Other Income 611 570 827 7.19% -26.12%
Total Income 26,538 25,140 23,919 5.56% 10.95%
Employee Benefit Expenses 14,097 13,400 12,994 5.20% 8.49%
Employee benefit Expenses as % of Sales 54.37% 54.54% 56.27% -0.30% -3.37%
EBIT 6589 6228 5064 5.80% 30.11%
EBIT Margin 25.41% 25.35% 21.93% 6bps 348bps
Profit After Tax 5215 4858 4466 7.35% 16.77%
PATM (%) 20.11% 19.77% 19.34% 34bps 77bps
Segment Revenue Q3FY21 Q2FY21 Q3FY20 QoQ % YoY%
Financial services 8,578 7,871 7,274 8.98% 17.93%
Retail 3,801 3,651 3,530 4.11% 7.68%
Communication 3,215 3,093 3,002 3.94% 7.10%
Energy, Utilities, Resources & Services 3,251 3,027 2,948 7.40% 10.28%
Manufacturing 2,416 2,241 2,378 7.81% 1.60%
Hi-Tech 2,130 2,244 1,749 -5.08% 21.78%
Life Sciences 1,827 1,672 1,559 9.27% 17.19%
Others 709 771 652 -8.04% 8.74%

Result Highlight:

  • Infosys Consolidated Revenue rose 5.52% QoQ to Rs 25927 crore—higher than the estimated Rs 25182.9

  • Digital revenue grew at 3% year-on-year in constant currency and accounts for over 50% of the company’s

revenue now.

  • Dollar revenue rose 6.2% to $3516 million. On a constant currency basis revenue rose by 6%

  • Operating Profit Margin expanded to 25.41% from 25.35% last

  • Net profit rose 16.77% to Rs 5215 crore for the December quarter compared with Rs 4466 crore in the same quarter last year. Reported strong Freecash flow of Rs.5683 crore which is 1.08 times of Net Profit

  • Basic EPS was Rs.12.25, Growth of 16.5% Y-o-Y and 7.3% Q-o-Q

  • Voluntary Attrition rate increases to 10% from 7.8% in previous

  • Large Deal TCV was at an all time high of $7.13 billion with 73% being net

Management commentary:

  • Commenting on the Q3 performance, Salil parekh, Chief Executive Officer and Managing Director, said: The scale of new client partnerships with leading global companies such as Vanguard, Daimler and Rolls-Royce demonstrate the depth of digital and cloud capabilities of Infosys. The commitment and skills of the employees to support and drive the digital journey of clients are matters of great pride for me”

  • Abhijit Bhattacharya, Chief Financial Officer, said: “among the largest and most complex automation programs undertaken, and the collaborative efforts between the Philips and Infosys BPM teams was key for the success of the program. Infosys BPM defined and implemented the automation program, with formal design principles to standardize and automate the selected use cases. The AssistEdge RPA platform (EdgeVerve) from Infosys was leveraged to enable digital workers deployed globally with bots concurrently managing finance processes, including complex record-to-report month-end reconciliations”

Conference Call Highlights

  • Overall deal value for the nine months of this financial year is over $12 billion and the net new large deal value for the nine months of this financial year is over $8 billion, positioning us very strongly for the quarters

  • operating cash flow was robust at $829 million for the quarter, cash and investments at $4.5 billion, which is stable sequentially after the payout of interim dividend.

  • Paying out variable pay for the quarter at 100%. Initiating salary increases for employees which will be effective January 1, 2021. And we are expanding our promotion cycle across all levels in this quarter.

  • Three business segments; Financial Services, High-Tech and Life Sciences reported double-digit

  • Utilization was at 86.3%, which is all-time high

  • Company won 22 large deals in Q3, 18 financial services, four deal seized in manufacturing and energy utilities resources and services sector, three deals in communication and one deal each in retail high- tech and other segments. Region wise 13 were from Americas, seven were from Europe and two were from rest of the world.


Infosys managed to beat Street expectations on revenue and margin front in the quarter ended December. Infosys posted its strongest third-quarter result in Eight years. Financial services, Energy, utilities, manufacturing are among the business segments that registered the double digit growth in this Quarter. North America region supported the company’s growth among all market segments. The company has Initated salary hike from January 2021 and expect some cost like travelling could also hit this quarter. It has partenerd with Daimler AG to support a technology-driven IT infrastructure transformation. Company signed the largest deal worth $7.13 billion in the Indian IT Industry. Apart from this, signed another deal of $500 Million. The company has provided the Guidance on Revenue and margin band to 4.5- 5% and 24-24.5% for the FY21E. On performance front, we expect company to report EPS of Rs.52 for FY22E. At CMP of Rs.1374, PE works out to be 26 times. Hence, investors can buy this stock at CMP of Rs.1374 for the target of Rs.1640 with time horizon of next 9-12 months.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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