Infosys FY20 net profit climbs 8% to Rs 16,639 crore; skips revenue guidance for FY21

Infosys, the country's second largest software exporter, on Monday reported a 7.97 per cent year-on-year rise in its net profit at Rs 16,639 crore for the financial year ended March 31, 2020. The company, however, skipped guidance on revenues and margins for FY21 due to business uncertainty emanating from COVID-19.

"The Bengaluru-headquartered company had posted net profit of Rs 15,410 crore in the financial year 2018-19," Infosys said in a filing to the Bombay Stock Exchange.

The IT major posted 9.8 per cent growth in revenue at Rs 90,791 crore in FY20 as compared to Rs 82,675 crore in FY19.

The operating profit stood at Rs 19,374 crore, registering a growth of 2.6 per cent YoY. The operating margin was 21.3 per cent in FY20.

"Considering the business uncertainty emanating from COVID-19, the company is unable to provide guidance on revenues and margins for FY 21 at this stage. The company will provide guidance after visibility improves," Infosys said in the regulatory filing.

For the fourth quarter ended March 31, 2020 (Q4FY20), Infosys reported a 6.10 per cent increase in consolidated profit at Rs 4,321 crore compared with Rs 4,074 crore in the same quarter last year. Revenue for the quarter rose 8 per cent to Rs 23,267 crore, it said.

Also Read: TCS FY20 profit rises 3% to Rs 32,340 crore; revenue up 7%

Operating profit margin stood at 21.20 per cent in Q4FY20 versus 21.40 per cent in Q4FY19.

"I am proud of the Infosys team that has worked exceptionally well to achieve 93 per cent remote working today and ensuring consistent service delivery for our clients in this rapidly changing environment. Our focus on the health of our employees and our commitment to our clients helped us navigate the past few weeks," said Salil Parekh, CEO and MD.

"We had an exceptional year in financial year 2020 with growth of 9.8 per cent and operating margin of 21.3 per cent. While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger," Parekh added.

Infosys' board has recommended a final dividend of Rs 9.50 per equity share for the financial year ended March 31, 2020. "The final dividend of Rs 9.50 per share is a testimony of a strong free cash flow performance for FY20," said Nilanjan Roy, CFO.

As of March 31, 2020, the company has strong balance sheet, with approximately $3.605 bn (Rs 27,276 crore) in cash and cash equivalents, including investments with zero debt.

Also Read: Wipro net profit rises 8% to Rs 9,772 crore in FY20; suspends revenue guidance on coronavirus uncertainty

On workforce front, Infosys had 2,42,371 employees as of March 31, compared to 2,28,123 during the same quarter ended last year. Attrition rate for January-March stood at 20.7 per cent against 20.4 per cent in the same period last fiscal.

The IT major also announced the appointment of Uri Levine as an independent director of the company, with effect from April 20, for a period of three years.

Last week, rival TCS reported a 2.8 per cent YoY rise in its net profit at Rs 32,340 crore for FY20, led by double-digit growth in life sciences and healthcare business. Revenue was up 7.1 per cent at Rs 1.57 lakh crore in FY20 as compared to Rs 1.46 lakh crore in FY19.

Ahead of earnings announcement, shares of Infosys closed Monday's trade at Rs 652.90 apiece, up 3.75 per cent, on the BSE. During the day's trade, the stock hit an intraday high and low of Rs 660.70 and Rs 639.30, respectively.