Infosys Q4 net dips 2% sequentially, announces Rs 9,200-cr share buyback

IT firm reports total contract value for FY21 of $14.1 billion, an all-time high

Technology services major Infosys Ltd on Wednesday said the company's Board approved a share buyback worth Rs 9,200 crore, at a maximum buyback price of Rs 1,750 per share, even as the company reported a 2.3 per cent sequential fall in fourth quarter net profit.

The company also reported a total contract value of $14.1 billion for FY21, an all-time high. Sixty-six per cent of this  value was net new.

The firm expects a full year revenue growth of 12-14 per cent in constant currency for FY22, while it expects operating margin in the range of 22-24 per cent.

Annual revenue growth for FY21 was 5 per cent in constant currency, and 10.7 per cent in reported currency at Rs 100,472 crore.

Fourth quarter results

Infosys reported a 2.3 per cent sequential fall in net profit to Rs 5,076 crore, for the fourth quarter ended March 31, 2021.

Revenue for the quarter was up 2 per cent sequentially and 9.6 per cent YoY in constant currency terms to Rs 26,311 crore.

The firm said digital revenue was at 51.5 per cent of total revenue during the fourth quarter.

For FY21, the company's board has recommended a final dividend of Rs 15 per share, making it a total of Rs 27 per share, a 54 per cent increase over FY20. With this, the company has announced a total dividend of Rs 11,500 crore for FY21.

“I am very pleased with our performance this year and incredibly proud of our employees for the passion and commitment they displayed despite a very tough environment. We have crossed a milestone of Rs 100,000 crore in revenue in FY21," said Salil Parekh, CEO and Managing Director of Infosys 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. Our record large deal wins stand testimony to the effectiveness of this approach”, . “A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22”, he added.

The operating margin for the March quarter came in at 24.5 per cent, a decline of 90 basis points from the previous quarter.

“Despite the disruptions, we continue to execute seamlessly with broad-based momentum across verticals. This has led to healthy volume growth and record utilization in a seasonally soft quarter”, said Pravin Rao, Chief Operating Officer. "While our employees continue to work from home through this health crisis, we remain focused on their wellness, including facilitating vaccination rollout for eligible employees. Attrition has picked up, largely reflecting a strong demand environment, but we remain confident of our employee engagement initiatives, vast talent pool and training capabilities to ensure seamless execution”, he added.

Attrition rose to 15.2 per cent from 10 per cent in the previous quarter, while revenue per employee- a productivity metric- rose to $55,200 per employee in Q4 compared to $54,300 per employee in the previous quarter.