You are here: Home » News-IANS » Business-Economy
Business Standard

Infosys to grow 9% in FY 2019; net dips in Q4

IANS  |  Bengaluru 

Global software Ltd on Friday projected a robust revenue growth of 9 per cent in dollar terms for fiscal 2018-19 despite its net profit declining 28 per cent sequentially in the fourth quarter of 2017-18.

"Consolidated revenues are expected to grow 7-9 per cent in dollar terms and 8.2-10.2 per cent in rupee terms for fiscal 2018-19," said the city-based IT firm in a regulatory filing on the

The revenue guidance is based on US dollar rate of Rs 65.18 on March 31.

Operating margin is expected to be in 22-24 per cent range.

The outsourcing firm's consolidated revenue for 2017-18 was Rs 70,522 crore in rupee terms and $10,939 million in dollar terms, which is 3 per cent and 7.2 per cent up over the corresponding revenues of 2016-17.

The company reported 28.1 per cent sequential decline in consolidated net profit to Rs 3,690 crore for the fourth quarter in rupee terms.

Consolidated revenue for the quarter under review was up 1.6 per cent sequentially to Rs 18,083 crore in rupee terms.

On yearly basis, net profit growth for Q4 was 2.4 per cent and revenue growth 5.6 per cent in rupee terms.

Under the International Financial Reporting Standards in dollar terms, consolidated net income also declined 28.1 per cent sequentially to $571 million but gross income was up 1.8 per cent sequentially to $2,805 million.

On yearly basis, net income, however, grew 5.3 per cent and gross income grew 9.2 per cent for the fourth quarter in dollar terms under the IFRS.

For the just-concluded fiscal (2017-18), consolidated net profit grew 11.7 per cent year-on-year to Rs 16,029 crore in rupee terms and 16.2 per cent to $2,486 million in dollar terms.

"Net profit for the year included positive impact of an advance pricing agreement with the in the third quarter," said the company in a statement later.

Operating profit for the fourth quarter at Rs 4,472 crore grew 3.5 per cent sequentially and 6.2 per cent annually, while operating margin was up fractionally to 24.7 per cent from 24.3 per cent in the third quarter.

Operating profit for the fiscal at Rs 17,148 crore grew 1.5 per cent over last year, while operating margin for the year was 24.3 per cent.

Digital offerings contributed 25.5 per cent ($2.79 billion) to the annual revenue of $10,939 million.

"Our robust performance is a reflection of the impact we have on our clients and the dedication of employees," said

The company plans to scale its digital business, which contributed $2.8 billion in the fiscal, energise its clients' core via artificial intelligence and automation, re-skilling its techies an d expanding its localisation in Australia, and the US.

"Navigating Your Next' is our aspiration of how we will partner with each one of our clients," said Parekh in a statement later.

said revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in.

"During the fourth quarter, we provided highest variable pay-outs in many years. We will be rolling out compensation increases for a large part of our workforce from April 1," he said.

According to M.D. Ranganath, operating margins for the quarter and the year were resilient due to focus on productivity and operational efficiency, leading to robust cash generation.

"Our margin guidance for 2018-19 reflects our emphasis on digital-led growth and focused investments in this journey," he said.

The company added 73 clients during the quarter, taking the total to 1,204 for the year from 1,191 quarter ago and 1,162 year ago.

The company rewarded its investors, with a record 870 per cent aggregate dividend or Rs 43.50 per share of Rs 5 face value for fiscal 2017-18.

"The board had recommended a total dividend of Rs 33.50 per share (670 per cent), including Rs 20.50 (410 per cent) final dividend and Rs 13 (260 per cent) interim dividend and a special dividend of Rs 10 per share (200 per cent)," said the statement.

The company's blue-chip scrip gained Rs 6.75 to close at Rs 1,169 per share at the end of Friday's trading on the as against Thursday's closing price of Rs 1,162.25 and opening price of Rs 1,174.50. The scrip also traded at a high of Rs 1,184 and a low of Rs 1,150.20 during the intra-day trading.

The company also announced buying US-based consumer insights agency for $75 million (Rs 489 crore) and decided to sell off its subsidiaries and Skava, which includes Kallidus by March 2019.

--IANS

bha/fb/vd

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 23:34 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU