Infosys on Thursday (April 13) posted a 7.8 per cent year-on-year rise in consolidated net profit at Rs 6,128 crore in March quarter of FY23, and gave 4-7 per cent revenue growth forecast for FY24 amid macro economic uncertainities.
The net profit (after minority interest) stood at Rs 5,686 crore in the fourth quarter of FY22. Seen sequentially, the net profit for Q4 came in 7 per cent lower.
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The results were below street estimates.
The Bengaluru-based Infosys – which competes in the market with Tata Consultancy Services (TCS), Wipro and other IT firms – also logged a 16 per cent year-on-year growth in consolidated revenue in the fourth quarter of FY23 at Rs 37,441 crore.
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Infosys has given revenue growth guidance of 4-7 per cent for FY24.
Infosys, during Q3 earnings announcement in January this year, had raised FY23 revenue guidance to 16-16.5 per cent against the previously projected band of 15-16 per cent.
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For the full year FY23, the net profit was up 9 per cent on year at Rs 24,095 crore, while revenue was 20.7 per cent higher at Rs 146,767 crore.
“For FY23, the Board has recommended a final dividend of Rs 17.50 per share. Together with the interim dividend of Rs 16.50 per share already paid, the total dividend per share for FY23 will amount to Rs 34.00 which is a 9.7% increase over FY22. With this, the company has announced total dividend of approx. Rs 14,200 crore for FY23,” the company said in a statement.
“Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programmes with our clients leveraging generative AI platforms,” said Salil Parekh, Infosys’ CEO and MD.
“As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal programme on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients”, he added.
“Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0% in FY23,” said Nilanjan Roy, Infosys’ Chief Financial Officer.
“Free cash generation in Q4, led by robust collections, was strong. Executing on our capital allocation policy, we successfully completed the share buyback and have proposed a final dividend of `17.50 for FY23”, he added.