Infosys Q4 results: Dividend, outlook, profit; here are some key takeaways
Infosys on Wednesday posted lower-than-expected financial results for the quarter ended March 31, 2022.
- Apr 13, 2022,
- Updated Apr 13, 2022 5:43 PM IST
Infosys on Wednesday posted lower-than-expected financial results for the quarter ended March 31, 2022. The IT major reported 12 per cent year-on-year growth in net profit (after minority interest) at Rs 5,686 crore against Rs 5,076 crore in the same quarter last year.
On the other hand, the revenue of the IT major increased by 22.70 per cent YoY to Rs 32,276 crore. Topline of the company grew 1.3 per cent on a quarter-on-quarter basis (QoQ), while net profit fall 2.1 per cent.
Earlier during the day, shares of the company settled 0.41 per cent up at Rs 1,748.65. The benchmark equity index BSE Sensex settled 237.44 points lower at 58,338.93.
“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, Infosys.
“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 capitalise on the expanding market opportunities”, he added.
Here are other key takeaways from earnings:
Dividend: Infosys recommended a final dividend of Rs 16 per equity share for the financial year ended March 31, 2022. The record date for the payment of the dividend is June 1, 2022. The same will be paid by the company on June 28, 2022.
“Together with the interim dividend of Rs 15 per share already paid, the total dividend per share for FY22 will amount to Rs 31 which is a 14.8 per cent increase over FY21. With this, the company has announced a total dividend of approx. Rs 13,000 crore for FY22,” Infosys said in a release.
Operating profit: Infosys’ operating profit advanced 8 per cent YoY to Rs 6956 crore in Q4FY22. However, it declined by 7 per cent on a QoQ basis.
Operating margins: The figure declined to 21.50 per cent in the March quarter against 24.50 per cent in the corresponding quarter last year and 23.50 per cent in the sequential quarter ended December 31, 2021.
Guidance: The company gave guidance for revenue growth of 13-15 per cent in constant currency and an operating margin of 21-23 per cent for FY23.
Attrition: Infosys also said that its attrition rate increased to 27.7 per cent in the March quarter, up from 25.5 per cent in the previous quarter and 10.90 per cent in the same quarter last year.
Client contribution to revenue: As of March 31, 2022, the top 5 clients contributed 11.8 per cent to revenues and the top 25 clients contributed 35.40 per cent. Infosys had 38 over $100 million clients as of March 31, 2022 against 37 on December 31, 2021 and 32 as of March 31, 2021.
Missed estimates: Overall, the fourth quarter result came below market expectations. Earlier, brokerage house YES Securities projected that Infosys may post a 26.30 per cent and 20.30 per cent year-on-year (YoY) growth in net sales and net profit, respectively, in Q4FY22. Likewise, KR Choksey Shares and Securities had forecasted 25.30 per cent YoY growth in net sales and a 16.30 per cent YoY rise in net profit for Infosys.
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Infosys on Wednesday posted lower-than-expected financial results for the quarter ended March 31, 2022. The IT major reported 12 per cent year-on-year growth in net profit (after minority interest) at Rs 5,686 crore against Rs 5,076 crore in the same quarter last year.
On the other hand, the revenue of the IT major increased by 22.70 per cent YoY to Rs 32,276 crore. Topline of the company grew 1.3 per cent on a quarter-on-quarter basis (QoQ), while net profit fall 2.1 per cent.
Earlier during the day, shares of the company settled 0.41 per cent up at Rs 1,748.65. The benchmark equity index BSE Sensex settled 237.44 points lower at 58,338.93.
“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, Infosys.
“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 capitalise on the expanding market opportunities”, he added.
Here are other key takeaways from earnings:
Dividend: Infosys recommended a final dividend of Rs 16 per equity share for the financial year ended March 31, 2022. The record date for the payment of the dividend is June 1, 2022. The same will be paid by the company on June 28, 2022.
“Together with the interim dividend of Rs 15 per share already paid, the total dividend per share for FY22 will amount to Rs 31 which is a 14.8 per cent increase over FY21. With this, the company has announced a total dividend of approx. Rs 13,000 crore for FY22,” Infosys said in a release.
Operating profit: Infosys’ operating profit advanced 8 per cent YoY to Rs 6956 crore in Q4FY22. However, it declined by 7 per cent on a QoQ basis.
Operating margins: The figure declined to 21.50 per cent in the March quarter against 24.50 per cent in the corresponding quarter last year and 23.50 per cent in the sequential quarter ended December 31, 2021.
Guidance: The company gave guidance for revenue growth of 13-15 per cent in constant currency and an operating margin of 21-23 per cent for FY23.
Attrition: Infosys also said that its attrition rate increased to 27.7 per cent in the March quarter, up from 25.5 per cent in the previous quarter and 10.90 per cent in the same quarter last year.
Client contribution to revenue: As of March 31, 2022, the top 5 clients contributed 11.8 per cent to revenues and the top 25 clients contributed 35.40 per cent. Infosys had 38 over $100 million clients as of March 31, 2022 against 37 on December 31, 2021 and 32 as of March 31, 2021.
Missed estimates: Overall, the fourth quarter result came below market expectations. Earlier, brokerage house YES Securities projected that Infosys may post a 26.30 per cent and 20.30 per cent year-on-year (YoY) growth in net sales and net profit, respectively, in Q4FY22. Likewise, KR Choksey Shares and Securities had forecasted 25.30 per cent YoY growth in net sales and a 16.30 per cent YoY rise in net profit for Infosys.
Also Read: PM Modi backs creator on Twitter for explaining UPI, digital payments
Also Read: Passenger vehicle sales in India fall nearly 4% YoY in March: SIAM