Infosys Q4 result: Profit up 12% to ₹5,686 cr; revenue rises 22.7%

Infosys Ltd, the country's second-largest IT services company, recorded a 12% year-on-year rise in its consolidated net profit at ₹5,686 crore in the January-March quarter of the financial year 2021-22 on differentiated cloud services and large deal momentum, the company said in a statement to the stock exchanges today.

CEO Salil Parekh-led Infosys had recorded a 17.47% YoY jump in its net profit at ₹5,076 crore during the same quarter last year.

The consolidated revenue from operations grew 22.7% to ₹32,276 crore in Q4 FY22, compared to ₹26,311 crore during the corresponding quarter last year, Infosys said.

The company's revenues in constant currency terms grew by 20.6% YoY and 1.2% on a QoQ basis in the Jan-March quarter of FY22. Its operating margin stood at 21.5%, a decline of 3.0% YoY.

Infosys' digital revenues in Q4 FY22 were 59.2% of its total revenues, with YoY constant currency growth of 38.8%, the company said.

“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.

Nilanjan Roy, chief financial officer, Infosys said the year was marked by intense supply side challenges, but still Infosys was able to deliver strong financial performance. "EPS growth of 15.2%, free cash flows surpassing $3 billion and return on equity of 29.1%, reflecting the company’s success, driven by client-centricity and rich capabilities," he said.

For the full financial year 2021-22, Infosys' revenue grew 21.1% YoY to ₹1,21,641 crore, while its net profit rose 14.3% to ₹22,110 crore.

Infosys also recommended a final dividend of ₹ 16/- per equity share for FY 22 (per value of ₹5 each). The record date for its annual general meeting (AGM) and the payment of the final dividend is June 1, 2022.

Together with the interim dividend of ₹15 per share already paid, the total dividend per share for FY22 will amounts to ₹31 apiece, which is a 14.8% increase over FY21. With this, the company has announced total dividend of around ₹13,000 crore for FY22, Infosys said.

In dollar terms, Infosys said its growth was broadbased, supported by continued momentum in large deal wins with the contract value of $9.5 billion.

In terms of employee metrics, Infosys' total headcount as of March 31, 2022, stood at 3,14,015, up from 2,92,067 during the quarter ending December 31, 2021, and 2,59,619 as of March 31, 2021. The attrition rate at Infosys seems to have seen a sharp rise at 27.7% as of March 31, 2022, compared to 10.9% as of March 31, 2021.

In its guidance for FY23, the company has said it expects revenue growth of 13%-15% in constant currency and an operating margin of 21%-23%.

Shares of Infosys were trading flat earlier today. The shares were quoting at ₹1,752 apiece, up 0.6% on BSE, against the previous closing price of ₹1,741.45. The Infosys share closed at Rs 1,751, 0.49% up, on the NSE.