Infosys Q3 Results Announced, Company Announces Acquisition of Semiconductor Design Services Provider

Infosys Q3 results were announced on 11 January 2023, and the company has  delivered $4,663 million in Q3 revenues with year-on-year and sequential decline of 1.0% in constant currency. The company said that it has displayed a resilient performance although the quarter was seasonally weak. Infosys also claims that its Infosys Topaz is playing the role of a differentiator in as far as the most happening Generative AI market is concerned.

“Q3 performance is a demonstration of our strong execution capabilities reflected in improved operational efficiencies achieved under ‘Project Maximus’, despite a challenging environment”, said Nilanjan Roy, Chief Financial Officer. “Cash generation remained robust with FCF to net profit conversion for Q3 at 90.6%”, he added. 

Key Highlights of Infosys Q3 Results

“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation” said Salil Parekh, CEO and MD. “Our clients are leveraging
our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses”, he added. Some key highlights are as follows:

• Revenues in CC terms declined by 1.0% YoY and QoQ.
• Reported revenues at Rs 38,821 crore, growth of 1.3% YoY.
• Operating margin at 20.5%, decline of 1.0% YoY and 0.7% QoQ.
• Basic EPS at Rs 14.76, decline of 6.1% YoY.
• FCF at Rs 5,548 crore, growth of 17.0% YoY; FCF conversion at 90.8% of net profit.
• Decline of attrition rate to 12.9%.

Infosys to Acquire Semiconductor Design Services Provider InSemi

Infosys announced an agreement to acquire InSemi, a semiconductor design and embedded services provider. With this investment, the company aims at strengthening its engineering R&D capabilities, said a statement from the company. The company also hopes at furthering is Chip-to-Cloud strategy through this move, considering the fact that semiconductors are at the heart of the technology which is driving exponential growth of artificial intelligence, 5G, hyperconnectivity, high performance computing, quantum technology, virtual reality, IoT and smart devices. Over the last five years, InSemi has built a foundation with solid growth and design capabilities across the semiconductor value chain. With Infosys as our catalyst, it creates a synergistic combination that allows us to scale and bring the power of AI & Engineering R&D and next-generation technology to global clients, expanding across industry sectors. We aim to further accelerate our progress and together with Infosys, it paves a path of innovation opening new opportunities for our teams", said Shreekanth Sampigethaya and Arup Dash, co-founders, InSemi.