Infosys Q3 Net Profits At Rs 3708 Crores; Beats Estimates

Business

oi-Sunil Fernandes

Tech major Infosys reported numbers that largely beat estimates for the quarter ending December 31, 2016.

By Sunil Fernandes

Updated: Friday, January 13, 2017, 9:27 [IST]

Infosys reported better then expected numbers for the third quarter ending December 31, 2016, with net profits growing to Rs 3,708 crores, as against expectations of a net profit of around Rs 3537 crores.

The third quarter is considered as a seasonally weak quarter and hence the performance can be considered as reasonable good against that backdrop. Revenues were placed at Rs.17,270 crores.

EBIT margins grew and the company upped its dollar revenue guidance, which went down very well with investors. The stock was up almost 3 per cent in trade. Check stock quote of Infosys here

The company has also said that it has raised its full year dollar revenue guidance to 10-10.4 percent. This means Infosys is likely to see good traction in the coming quarter.

The EBIT margin at the company expanded to 25.1 per cent versus expectations of around 24.7 per cent.

Revenues declined marginally and this have largely been after RBS canceled a contract with the company last year. On Thursday TCS reported numbers that were largely in line with estimates. In fact, the revenue of the company was slightly better than expected in a seasonally weak quarter.

Companies in the IT sector have been plagued with worries over slowing growth and H1B visa worries in the US. Margins have taken a slight beating for the sector and attrition rates continue to be a worry. However, the results of both TCS and Infosys have beaten expectations.

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