INFOSYS Announces Quarterly Results (3QFY21); Net Profit Up 16.8%

Thu, 14 Jan

INFOSYS has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

INFOSYS Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	230,920	245,700	259,270	5.5%	12.3%
Other income	Rs m	8,270	5,700	6,110	7.2%	-26.1%
Turnover	Rs m	239,190	251,400	265,380	5.6%	10.9%
Expenses	Rs m	172,910	174,870	185,120	5.9%	7.1%
Gross profit	Rs m	58,010	70,830	74,150	4.7%	27.8%
Depreciation	Rs m	7,370	8,550	8,260	-3.4%	12.1%
Interest	Rs m	420	480	490	2.1%	16.7%
Profit before tax	Rs m	58,490	67,500	71,510	5.9%	22.3%
Tax	Rs m	13,830	18,920	19,360	2.3%	40.0%
Profit after tax	Rs m	44,660	48,580	52,150	7.3%	16.8%
Gross profit margin	%	25.1	28.8	28.6
Effective tax rate	%	23.6	28.0	27.1
Net profit margin	%	18.7	19.3	19.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 12.3% on a year-on-year (YoY) basis. The expenses were up by 7.1% YoY during the same period.
• The company's operating profit increased by 27.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 28.6% in 3QFY21 as against 25.1% in 3QFY20.
• Depreciation charges increased by 12.1% and finance costs increased by 16.7% YoY, respectively.
• Other income declined by 26.1% YoY during the quarter.
• Net profit for the quarter increased by 16.8% YoY. Net profit margins during the quarter increased from 18.7% in 3QFY20 to 19.7% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 5.9% QoQ during the same period.
• The company's operating profit increased by 4.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 28.6% in 3QFY21 as against 28.8% in 2QFY20.
• Net profit for the quarter increased by 7.3% QoQ, while net profit margins increased from 19.3% in 2QFY20 to 19.7% in 3QFY21.

To see how INFOSYS has performed over the last eight quarters,please visit here.

REVEALED: The Secret to potentially Making Rs 18,870, Rs 9,425 and Rs 7,315 in a Single Day...

INFOSYS Share Price Performance

Over the last one year, INFOSYS share price has moved up from Rs 775.4 to Rs 1,387.7, registering a Gain of Rs 612.4 or around 79.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,882.7 (up 0.5%). Over the last one year it has moved up from 16,167.4 to 26,882.7, a gain of 10,715 points (up 66.3%).

Overall, the S&P BSE SENSEX is up 18.2% over the year.

Current Valuations

At the current price of Rs 1,387.7, the price to earnings (P/E) ratio of INFOSYS stands at 31.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 9.1 times.