Infosys Q4 results: Net profit rises 12% to Rs 5,686 cr; revenue up 23%

IT services giant Infosys on Wednesday reported a 12% year-on-year rise in its consolidated net profit (after minority interest) at Rs 5,686 crore for the fourth quarter ended March (Q4) as against Rs 5,076 crore a year ago.

Revenue rose nearly 23% to Rs 32,276 crore in Q4FY22 as against Rs 26,311 crore in Q4FY21. 

On Wednesday, the company's scrip on BSE closed 0.4% higher at Rs 1,748.65. The company said its board recommended a final dividend of Rs 16 per equity share for the financial year ended March 31, 2022. 

"Together with the interim dividend of Rs 15 per share already paid, the total dividend per share for FY22 will amount to Rs 31, which is a 14.8% increase over FY21. With this, the company has announced total dividend of approximately Rs 13,000 crore for FY22," said the Bengaluru-headquartered IT firm.

“Infosys delivered highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by ‘One Infosys’ approach. We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys”, said Salil Parekh, CEO and MD, Infosys.

On sequential basis, the net profit declined 2.1% while revenue rose 1.3%. The IT services giant has pegged revenue growth outlook at 13%-15% for 2022-23 and operating margin of 21%-23% in FY23. 

"Growth was broadbased, supported by continued momentum in large deal wins with TCV of $9.5 billion in FY23. EPS grew by 15.2% in rupee terms. Q4 sequential growth was 1.2% in constant currency with operating margin of 21.5%. TCV of large deal wins was $2.3 billion in Q4," said Infosys in a stock exchange filing. 

The company announced gross addition of 110 clients in March quarter as compared to 130 additions in the year-ago period. It saw voluntary attrition of 27.7% in Q4FY22 as against 10.9% in Q4FY21.

The Indian software behemoth Infosys Ltd also said on Wednesday it is moving its business out of Russia and is pursuing alternate options against the backdrop of the Ukraine conflict.

Several other global IT and software players including Oracle Corp and SAP SE have either suspended or paused all operations in Russia.

In last fiscal year, Infosys' net profit was up 14.3% to Rs 22,110 crore, while revenue was higher 21% to Rs 1.21 trillion compared to the previous fiscal year.

"With a robust demand environment ahead, we envisage making appropriate long-term investments in capability building across sales, delivery and innovation. However, we plan to neutralize some of the impact through aggressive cost optimization programs and value-led pricing driven by service and brand differentiation. This, along with post-pandemic normalization of expenses, is reflected in the margin guidance," Nilanjan Roy, Chief Financial Officer said.

"Our sustained momentum in FY22, large deal wins, robust deal pipeline and client confidence in our capabilities gives us comfort to provide a guidance of 13 to 15% for growth in fiscal 2023 in constant currency terms," Salil Parekh, CEO and MD of Infosys, told reporters in a briefing.

For full year FY22, Infosys' net profit was up 14.3% to Rs 22,110 crore, as revenue rose by 21% to Rs 1,21,641 crore compared to the previous fiscal.

Parekh noted that the company's growth during the fiscal had been broad-based, spread across business segments, service lines and geographies.

"We see the demand environment to be robust today. Yes, on the macro environment...there's a lot of talk going on. But in our pipeline and the work that we are doing in digital and cloud, we see a clear demand with our client base," Parekh said.

Infosys continues to gain market share as a result of sustained clients' confidence in its ability to successfully navigate their digital journeys, he pointed out.

"...Based on what we've had in terms of large deals...and what we are seeing in our pipeline going ahead, gives us good confidence that this is the guidance in which we start the year at 13 to 15%. As the year progresses, we'll see what the various forces are that will play into all of this," Infosys' top boss said.

In dollar terms, the Q4 net profit stood at $752 million, nearly 8% higher year-on-year, while revenue came in at $4,280 million, 18.5% more than the year-ago quarter.

For the full year, net profit at $2.9 billion was 13.4% higher than the previous fiscal. The revenue grew 20.3% to $16.3 billion.

With inputs from PTI