Infosys FY21 net profit rises 16.6% to Rs 19,351 crore

IT major Infosys on Wednesday reported a 16.6 per cent year-on-year (YoY) increase in its consolidated net profit at Rs 19,351 crore for the financial year ended March 31, 2021. The company's revenue rose 10.7 per cent YoY to Rs 1,00,472 crore during the fiscal under review. Operating margin during the fiscal expanded 320 basis points to 24.5 per cent.

The company's board recommended a capital return of Rs 15,600 crore, including final dividend of Rs 6,400 crore, and open market buyback of shares of Rs 9,200 crore. It will buyback shares at a maximum price of Rs 1,750 apiece, a premium of 25 per cent over Tuesday's closing price of Rs 1,398.60 per share. The final dividend for fiscal year 2020-21 will be Rs 15 per equity share.

For the March quarter of last fiscal, the IT major reported a 17.5 per cent year-on-year (YoY) increase in its consolidated net profit at Rs 5,076 crore. On a sequential basis, net profit declined 2.3 per cent over the previous quarter.

The company's revenue rose 13.1 per cent YoY to Rs 26,311 crore during the quarter under review, while it rose 1.5 per cent on a quarter-on-quarter (Q0Q) basis.

The company's operating margin expanded 330 basis points YoY to 24.5 per cent in the quarter ended March. However, it contracted 90 basis points as compared with the preceding quarter.

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The company gave a revenue growth guidance of 12-14 per cent in constant currency for fiscal year 2021-22, while it expects operating margin to be at 22-24 per cent.

"Despite the disruptions, we continue to execute seamlessly with broad-based momentum across verticals. This has led to healthy volume growth and record utilization in a seasonally soft quarter," Infosys COO Pravin Rao said, adding that attrition has picked up, which largely reflects a strong demand environment.

Voluntary attrition stood at 15.2 per cent during March quarter as against 10 per cent in the preceding quarter and 15.3 per cent in the year-ago quarter.

The company's large deal signings stood at $2.1 billion in March quarter, while it was at $14.1 billion for FY21.

"A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22," the company's CEO and MD Salil Parekh said.

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