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Infosys Q4 net rises 17.5% on large deals

Revenue surge: Infosys crossed a milestone of ₹1 lakh crore in revenue in FY21, says Salil Parekh.   | Photo Credit: SOMASHEKARA GRN

Infosys Ltd. on Wednesday reported fourth-quarter profit rose 17.5% from a year earlier to ₹5,076 crore, helped by large deal wins and a pandemic-induced acceleration in digital adoption.

The software services firm also said it expects revenue in the current fiscal to grow by 12% to 14% and provided guidance for an operating margin of 22% to 24%. “A strong momentum exiting FY21, alongside a focussed strategy to accelerate client digital journeys, gives us confidence for a stronger FY22,” said CEO and MD Salil Parekh.

Revenue in the three months ended March increased 13.1% to ₹26,311 crore. Full-year revenue rose 10.7% to ₹1,00,472 crore while net profit climbed 16.6% to ₹19,351 crore.

“We have crossed a milestone of ₹1,00,000 crore in revenue in FY21,” Mr. Parekh said in a statement. “Our intense focus on client relevance, growing our digital portfolio with differentiated capabilities like Infosys CobaltTM, and empowering employees have helped us emerge as a preferred partner-of-choice for our global clients,” he added.

Infosys said it won its largest-ever deal, among 24 other large deals clinched in the quarter totalling $2.1 billion. Of these, 52% were first-time deals.

Operating margin fell 90 basis points quarter-on-quarter to 24.5%. For the full year the margin was 24.5%, at the top end of Infosys’s guidance range of 24-24.5%.

The Infosys board approved a share buy-back of up to ₹9,200 crore.

“Executing on our capital allocation policy, the company proposes to increase the total dividend per share by 54% over the previous year and a buy-back of equity shares of up to ₹9,200 crore,” said CFO Nilanjan Roy. “It will be a long process and will take 6 to 7 months to complete,” he added.

For FY21, the firm recommended a final dividend of ₹15, bringing total dividend per share to ₹27.

With this, the company has announced a total dividend payout of ₹11,500 crore for FY 21.

‘Attrition rises’

Infosys reported voluntary attrition of 15.2% in the fourth quarter, compared with 10% in the preceding quarter. It added 10,307 employees on a net basis to take total headcount to 2,59,619.

In FY21, Infosys hired 36,000, of whom 21,000 were from campuses. It plans to hire more than 25,000 in FY22 from campuses in India and abroad. Larger rival TCS hired more than 40,000 in FY21.

“We implemented a salary hike in January and we are planning another in July,” said COO U.B. Pravin Rao.

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Printable version | May 18, 2021 1:52:53 PM | https://www.thehindu.com/business/infosys-q4-net-rises-175-on-large-deals/article34320826.ece

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