Infosys Q4 Net Gets 17.5% On Big Deals

Infosys Ltd on Wednesday helped boost fourth quarter profit by 17.5% to 76.5,076 crore, big deal wins and an epidemic-driven acceleration in digital adoption.

The software services firm also said that it expected revenue to grow from 12% to 14% in the current fiscal year and provided guidance for operating margins of 22% to 24%. “There is a strong momentum beyond FY15, with a focused strategy to accelerate the customer digital journey,” said Salil Parekh, CEO and MD.

Revenue grew by 13.1% to ₹ 26,311 crore in the three months ended in March. The full year revenue increased by 10.7% to Rs 1,00,472 crore, while the net profit increased by 16.6% to 10.19,352 crore.

“We have crossed the milestone of ₹ 1,00,000 crore in revenue in FY15,” the Finance Minister said in a statement. He added, “Our intense focus on customer relevance, growing our digital portfolio with differentiated capabilities such as Infosys CobaltTM, and empowering employees have helped us emerge as a preferred partner for our global customers is.”

Infosys said it won its largest deal among 24 other major deals in the quarter totaling $ 2.1 billion. Of these, 52% were first time deals.

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

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

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

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

With this, the company has announced a total dividend payment of ₹ 11,500 crore for FY21.

‘Attraction increases’

Infosys reported a voluntary attendance of 15.2% in the fourth quarter, compared to 10% in the previous quarter. This added 10,307 employees on a total basis taking the total headbount to 2,59,619.

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

COO UB Praveen Rao said, “We implemented the wage hike in January and we are planning another one in July.”