Infosys Q4 Results: Profit Jumps 12% YoY To Rs 5,686 Cr; Firm Declares Final Dividend Of Rs 16

Infosys' revenue from operations rose to Rs 32,276 crore, a rise of 23 per cent against Rs 26,311 crore recorded during the corresponding period of last year

Infosys also said on Wednesday it is moving its business out of Russia and is pursuing alternative options against the backdrop of the Ukraine conflict. Image: Getty

New Delhi: India’s second-largest software services company, Infosys, on Wednesday logged a 12 per cent rise in its net profit for March-quarter of 2021-22 as it won more contracts from global businesses expanding their digital presence, according to Reuters report.

The Bengaluru-headquarted firm's consolidated net profit climbed to Rs 5,686 crore ($746.87 million) in the quarter ended March 31, 2022 from Rs 5,076 crore a year earlier. Revenue from operations rose to Rs 32,276 crore, a rise of 23 per cent against Rs 26,311 crore recorded during the corresponding period of last year.

Cloud services also contributed to the growth in earnings, according to news report. 

The company said its board recommended a final dividend of Rs 16 per equity share for the financial year ended March 31, 2022.

In last financial year, Infosys’s net profit was up 14.3 per cent to Rs 22,110 crore, while revenue was higher 21 per cent to Rs 1.21 lakh crore compared to the previous financial year.

CEO and MD, Infosys, Salil Parekh said, “Infosys delivered highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities... We continue to gain market share as a result of sustained clients' confidence in our ability to successfully navigate their digital journeys.”

The software services firm said in a stock exchange filing, “Growth was broadbased, supported by continued momentum in large deal wins with TCV of $9.5 billion in FY23. EPS grew by 15.2 per cent in rupee terms. Q4 sequential growth was 1.2 per cent in constant currency with operating margin of 21.5 per cent. TCV of large deal wins was $2.3 billion in Q4.”

Infosys also said on Wednesday it is moving its business out of Russia and is pursuing alternate options against the backdrop of the Ukraine conflict. Several other global IT and software players, including Oracle Corp and SAP SE have either suspended or paused all operations in Russia.

On Wednesday, the company's stock on the BSE closed 0.4 per cent higher at Rs 1,748.65.

Key Highlights:

1. Demand environment remained extremely strong. Infy large deal pipeline is better than last year, especially on digital side.

2. No impact on demand environment as of now from geopolitical tension and other macro related issues. Infy has no direct exposure to any Russian companies and no centres in Ukrain. Other Eastern European centres have good revenue traction. 

3. Sequential Growth deceleration in Q4 happening in second consecutive year. According to management this is more seasonal and seems to be the new normal for Infy going forward.

4. Seems to be Infy management is putting growth ahead of margin to play this strong demand environment and hence lower margin guidance for FY23.