Infosys Q4 PAT slips 2.1% QoQ to Rs 5,686 cr

The IT firm's consolidated net profit fell 2.1% to Rs 5,686 crore on a 1.3% increase in revenues to Rs 32,276 crore in Q4 FY22 over Q3 FY22.

On a year-on-year basis, Infosys' net profit and revenue in Q4 FY22 increased 12% and 22.7%, respectively.

In dollar terms, the company reported revenues of $4,280 million, registering a growth of 18.5% YoY for the quarter ended 31 March 2022.

Revenues in constant currency terms grew by 20.6% YoY and 1.2% QoQ. Operating margin for the quarter stood at 21.5%, a decline of 3% YoY and 2% QoQ.

For the quarter ended 31 March 2021, Free cash flow (FCF) was Rs 5,769 crore, registering a YoY decline of 0.9% while FCF conversion was at 101.3% of net profit.

Infosys said growth was broad-based, supported by continued momentum in large deal wins with total contract value (TCV) of large deal wins was $2.3 billion in Q4 FY22.

Infosys consolidated net profit rose 14.3% to Rs 22,110 crore on a 21.1% increase in revenues to Rs 121,641 crore in the year ended March 2022 (FY22) over the year ended March 2021 (FY21). Revenues in CC terms grew by 19.7% YoY. Operating margin stood at 23% in FY22, a decline of 1.5% YoY.

The company issued strong revenue growth guidance of 13%-15% in constant currency and operating margin guidance of 21%-23% for FY23.

For FY22, the board has recommended a final dividend of Rs 16 per share.

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. With the acceleration of digital disruptions across industries, we see immense potential to engage and partner with clients as they transform, adapt and thrive. We will scale talent globally, invest in employees and accelerate innovation and digital capabilities to capitalize on the expanding market opportunity, he added.

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, said Nilanjan Roy, chief financial officer.

The company had 1,741 active clients as of 31 March 2021, compared with 1,738 as on 31 December 2021 and 1,626 as on 31 March 2020.

Last twelve months IT services attrition rate stood at 27.7% as at 31 March 2021, compared with 25.5% as at 31 December 2021 and 10.9% as at 31 March 2020.

Infosys is a global leader in next-generation digital services and consulting.

Shares of Infosys rose 0.41% to Rs 1748.65 on Wednesday.

Powered by Capital Market - Live News