India's second largest Information Technology company Infosys Wednesday reported a 7.2 percent quarter-on-quarter growth in its consolidated net profit for the quarter ended December to Rs 5,809 crore.
The company also recorded q-o-q rise of 7.7 percent on-quarter rise in consolidated revenues to Rs. 31,867 crore led by its hybrid cloud partnership with German auto major Daimler announced in December 2020, the increase in large deals and growth across verticals.
"Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation," said Salil Parekh, managing director and chief executive officer at Infosys in a press statement.
In constant-currency terms, Infosys' consolidated revenues grew 7 percent sequentially.
"We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations," Parekh said.
Infosys reported to have sealed deals worth $2.53 billion in the reported quarter.
The firms's digital services sales maintained robust growth as it jumped 42.6 percent year-on-year in constant currency terms in the December quarter.
The digital revenues share compared to overall sales also grew to 58.5 percent from 56.1 percent in the previous quarter.
The Bengaluru-based company reported a growth consolidated operating profit grew 7.3 percent sequentially to Rs. 7,484 crore even as selling and marketing expenses climbed 7.3 percent on-quarter.
However, Infosys recorded a 10 basis points quarter-on-quarter reduction in consolidated operating margin to 23.5 percent due to continued costs in efforts to retain talent in the company.
The company's combatting high attrition continued in the December quarter as the voluntary attrition rate skyrocketed to 25.5 percent compared to 20.1 percent in the last quarter.
“Despite the cost escalations driven primarily by supply-side challenges, we delivered another quarter of healthy margins, with improved cost optimization, continued operating leverage, and a stable pricing environment," said Chief Financial Officer Nilanjan Roy.
During the period under review, Infosys gained two new clients each in the $100 million-plus category and $50 million-plus category.
Staff utilisation including trainees dropped to 82.7 percent from 84.1 percent in the last quarter likely owing to fewer number of workdays in the quarter.