India’s second-largest software services firm Infosys posted a 12 per cent year-on-year increase in consolidated net profit for the March quarter at ₹5,686 crore.
The company projected 13-15 per cent revenue growth for FY23, on the back of a “strong demand environment” and “robust deal pipeline”.
The company also asserted that it is not engaged in any business with Russian clients currently, nor has any such plans going ahead.
Infosys posted net profit (after minority interest) of ₹5,686 crore in the just-ended quarter, as against ₹5,076 crore in Q4 FY21.
The Q4 scorecard translates into a 12 per cent year-on-year growth in net profit, although the numbers on a sequential basis are two per cent lower than the December quarter.
Infosys revenue grew 22.7 per cent to ₹32,276 crore in Q4 FY22, from ₹26,311 crore in the year-ago period.
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The IT services giant has pegged revenue growth outlook at 13-15 per cent for the full year of FY23.
At the start of FY22, Infosys had projected that full year revenue will grow 12-14 per cent in constant currency terms. During the year, the company upped its outlook a few notches and in January this year, it increased its revenue growth guidance for FY22 to 19.5-20 per cent.
“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 per cent 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 by 14.3 per cent to ₹22,110 crore, as revenue rose by 21 per cent to ₹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,” Parekh pointed out.
“…Based on what we have 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 per cent. As the year progresses, well see what the various forces are that will play into all of this,” Infosys top boss said.
The board has proposed a final dividend of ₹16 per share, taking the total dividend for FY22 to ₹31 per share, an increase of 14.8 per cent over the prior year. With this, the company has announced total dividend of about ₹13,000 crore for FY22.
In dollar terms, the Q4 net profit stood at $752 million, nearly eight per cent higher year-on-year, while revenue came in at $4,280 million, 18.5 per cent more than the year-ago quarter.
For the full year, net profit at $2.9 billion was 13.4 per cent higher than the previous fiscal. The revenue grew 20.3 per cent to $16.3 billion.
“Infosys delivered $16.3 billion in revenues with the highest annual growth in the last decade of 19.7 per cent in constant currency, with a robust operating margin of 23 per cent. Growth was broad-based, supported by continued momentum in large deal wins with TCV (total contract value) of $9.5 billion,” the company said in a statement.
According to Infosys, the TCV of large deal wins stood at $2.3 billion in Q4.
“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,” Parekh said.
To a question on the impact of the Russia-Ukraine war on the company’s business, Parekh said, “Given what is going on in the region, we have started to transition all of our work from our centre in Russia to our centres outside Russia. The company has less than 100 employees in Russia.”
“We work with no Russian clients, and the work we do is with a small number of global clients in Russia, for which as I just mentioned, we have started the transition. So at this stage, we have no impact within our business given what is going on from an Infosys perspective,” Parekh said.
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“The company does not do any business with Russian clients today and has no plans of doing so going ahead as well. That said, Infosys as a company would like to see the two sides come together and reach some agreement on peace,” Parekh said.
“Once again, we are very much concerned with what is going on at the ground, and were doing everything we can to help. We are also providing some assistance for reskilling of individuals that are displaced and seeing as they move to other geographies, if they can work in some of our locations in Eastern Europe,” Parekh added.