India's second largest software firm Infosys has announced its third quarter results for FY18. The company has reported a 1.3% QoQ increase in sales and a 37.7% QoQ rise in the net profit for 3QFY18.
Performance Summary
- In rupee terms, consolidated sales increased by 1.3% QoQ during 3QFY18. In US dollar terms and constant currency terms, sales were up 1% QoQ and 0.8% QoQ respectively. Volumes were up 1.6% QoQ.
- Operating profit was up 2.4% QoQ. The operating margin improved to 27.1%.
- The other income was higher by 8.9% QoQ while the profit before tax (PBT) was up 37.7% QoQ.
- The consolidated net profit came in at Rs 51,290 bn, an increase of 37.7% QoQ. This was largely due to a tax write-back in the US.
- The company concluded its share buyback on 27 December 2017 and 113,043,478 shares were extinguished.
Consolidated Financials
(Rs m) |
2QFY18 |
3QFY18 |
Change |
9MFY17 |
9MFY18 |
Change |
Sales |
175,670 |
177,940 |
1.3% |
513,640 |
524,390 |
2.1% |
Expenditure |
128,650 |
129,770 |
0.9% |
374,180 |
383,590 |
2.5% |
Operating profit (EBITDA) |
47,020 |
48,170 |
2.4% |
139,460 |
140,800 |
1.0% |
Operating profit margin (%) |
26.8% |
27.1% |
|
27.2% |
26.9% |
|
Depreciation & Amortisation |
4,560 |
4,980 |
9.2% |
12,570 |
14,040 |
11.7% |
Other income |
8,830 |
9,620 |
8.9% |
23,330 |
26,590 |
14.0% |
Profit before tax |
51,290 |
52,810 |
3.0% |
150,220 |
153,350 |
2.1% |
Tax |
14,030 |
1,520 |
-89.2% |
42,680 |
29,250 |
-31.5% |
Profit after tax/(loss) |
37,260 |
51,290 |
37.7% |
107,540 |
124,100 |
15.4% |
Minority Interest & Others |
0 |
0 |
|
-50 |
-710 |
|
Net Profit |
37,260 |
51,290 |
37.7% |
107,490 |
123,390 |
14.8% |
Net profit margin (%) |
21.2% |
28.8% |
|
20.9% |
23.7% |
|
No. of shares |
|
|
|
|
2,183.9 |
|
Diluted earnings per share (Rs)* |
|
|
|
|
73.0 |
|
P/E ratio (x)* |
|
|
|
|
14.8 |
|
*On a trailing 12 months basis
Segmental Performance
Rs m |
2QFY18 |
3QFY18 |
Change |
By service offerings |
|
|
|
Application development |
27,405 |
27,403 |
0.0% |
Application maintenance |
28,107 |
28,826 |
2.6% |
Business Process Management |
8,959 |
9,431 |
5.3% |
Infrastructure Management Services |
15,810 |
15,659 |
-1.0% |
Product Engineering Services |
7,202 |
7,118 |
-1.2% |
Testing Services |
16,513 |
16,726 |
1.3% |
Others |
5,446 |
4,982 |
-8.5% |
Total IT services |
109,442 |
110,145 |
0.6% |
Consulting, Package Implementation & Others |
57,093 |
58,364 |
2.2% |
Products, Platforms and Solutions |
9,135 |
9,431 |
3.2% |
Total Revenues |
175,670 |
177,940 |
1.3% |
By new services and software |
|
|
|
New Services (Cloud, Analytics, API, IoT, Cyber Security) |
16,513 |
17,616 |
6.7% |
New Software (Edge, NIA, Panaya, Skava) |
2,811 |
3,025 |
7.6% |
By industry vertical |
|
|
|
Banking and Financial Services |
47,431 |
46,798 |
-1.3% |
Insurance |
11,243 |
12,100 |
7.6% |
Manufacturing & Hi Tech |
38,647 |
38,791 |
0.4% |
Retail & CPG |
24,242 |
25,090 |
3.5% |
Telecom |
18,270 |
18,684 |
2.3% |
Energy & Utilities |
9,662 |
10,321 |
6.8% |
Transportation & Logistics |
3,513 |
3,737 |
6.4% |
Lifesciences & Healthcare |
11,946 |
11,566 |
-3.2% |
Others |
10,716 |
10,854 |
1.3% |
By geography |
|
|
|
North America |
106,456 |
107,476 |
1.0% |
Europe |
40,755 |
43,417 |
6.5% |
India |
5,797 |
5,338 |
-7.9% |
Rest of world |
22,661 |
21,709 |
-4.2% |