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Below is the first cut of Infosys Q3FY22 Result Update by Mr. Piyush Pandey, Lead Analyst – Institutional Equities, YES SECURITIES.

Infosys Q3FY22 Result First cut- Revenue significantly above estimate; EBIT margin flatish QoQ( slightly below estimate on higher employees cost)

Reported revenue of Rs 318.7bn( up 7.7% QoQ in INR terms, up 6.3% QoQ  in USD terms). It was broadbased growth with higher uptick in manufacturing and Life science vertical.

Digital revenue grew 41.2% YoY in USD terms, while core( legacy business was flat YoY). Digital now contributes 58.5% of revenue compared to 56.1% in Q2FY22.

EBIT margin was down 10 bps QoQ at 23.5%  as positive impact from higher revenue growth got negated by 8.3% QoQ growth in direct costs.

Deal booking remained strong as it signed large deals of  $2.53 bn vs $2.15 QoQ.

Added 111 clients during Q3FY22 compared to 117 during Q2FY22.

Total headcount increased by ~12,400 QoQ to 2,92,067.

LTM attrition increased by 540 bps QoQ to 25.5%, signifying higher demand for talent in the industry

Utilisation was down 70 bps  QoQ, to 88.5% on account of seasonality.

*It has increased revenue growth guidance for FY22 to 19.5% -20% from 16.5%- 17.5% in CC terms.*

Overall, strong revenue growth in the quarter along with robust deal booking but the sharp spike in attrition is matter of concern. We currently have BUY Rating on the stock.

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