Infosys Q4 net profit up 12% to Rs 5,686 cr; revenue rises 23%, dividend declared

India's second biggest IT services major Infosys Ltd on Wednesday reported a 12 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 5,686 crore for the quarter ended 31 March, 2022. The Bengaluru-based company had reported a net profit of Rs 5,076 crore in the year-ago period.

Sequentially, the IT behemoth reported 2.1 per cent decline in the current quarter Q4FY22 from Rs 5,809 crore in Q3FY22.

 

Revenue from operations rose 22.6 per cent to Rs 32,276 crore from Rs 26,311 crore in the same quarter last fiscal.

Revenues in dollar terms stood at $4,280 million, up 18.5 per cent YoY. Revenues were up 1.2 per cent sequentially (20.6 per cent YoY) in constant currency terms. 

The company also stated that it 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.

Meanwhile, Q4 sequential growth was 1.2 per cent in constant currency (CC) with operating margin of 21.5 per cent. Total contract value (TCV) of large deal wins was $2.3 billion.

Its board has also recommended a final dividend of Rs16/- per equity share for the financial year ended March 31, 2022. The record date for the purposes of the Annual General Meeting and payment of final dividend is June 1, 2022. The dividend will be paid on June 28, 2022.

 

Infosys and rivals Tata Consultancy Services Ltd and Wipro Ltd have raked in billions of dollars in contracts over the past two years as businesses step up investments in services from cloud computing to cyber security.

Further, Infosys also informed that its attrition rate surged to 27.7 per cent in March quarter, up from 25.5 per cent in the previous quarter.

“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. 

“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”, he added. 

“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 postpandemic normalization of expenses, is reflected in the margin guidance," added Nilanjan Roy, Chief Financial Officer. 

Shares of Infosys on Wednesday closed 0.55 per cent higher at Rs 1,751 apiece on BSE.