Infosys Q4 results: Net profit up 12%, FY23 revenue growth seen at 13-15%

India's second largest IT services exporter Infosys Ltd's consolidated net profit rose 12% to ₹5,686 crore for the March quarter. Large deal momentum and differentiated cloud services led to highest annual growth in a decade. 

The profit was ₹5,076 crore in corresponding quarter of the pervious fiscal.

Infosys revenue from operations rose 23% to ₹32,276 crore in the fourth quarter as against ₹26,311 crore a year ago.

A Bloomberg consensus estimate expected Infosys to post a net profit of ₹5,961 crore, while revenues were seen at ₹32,709 crore for the March quarter.

On Wednesday, Infosys scrip was higher by 0.49% to settle at ₹1,751 apiece on NSE. On a year-to-date basis, the stock was down about 8% so far in 2022 as against a 10% drop in the Nifty IT index and a negligible fall in the benchmark Nifty.

Operating margins took a dent in the March quarter at 21.5% on one-off adverse contractual impact.

The company has set a strong revenue growth guidance for FY23 at 13%-15% for FY23 and an operating margin guidance of 21%-23%.

“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 Infosys CEO and MD Salil Parekh.

Infosys board has recommended a final dividend of ₹16 per equity share for the financial year ended March 31, 2022.

“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 opportunities”, Salil added.

Revenues in Constant Currency terms grew by 21% over last year and 1.2% sequentially, while reported dollar revenues came in at $4,280 million, a growth of 18% year-on-year.

“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 normalisation of expenses, is reflected in the margin guidance”, said Infosys CFO Nilanjan Roy.

The IT giant's attrition rate zoomed to 27.7% in March quarter, up from 25.5% in the December quarter. Infosys has hired 85,000 freshers in the financial year gone by and is looking to hire upwards of 50,000 in the current fiscal.