India’s second largest IT services company Infosys on Thursday reported a net profit of Rs 6,128 crore for the fourth quarter ended March 2023 (Q4 FY23), a jump of 7.8 per cent over the year-ago period. Its revenue grew 16 per cent to Rs 37,441 crore during January-March 2023, as against Rs 32,276 crore a year ago.
Infosys had a net profit of Rs 5,686 crore in the same period last year.
In dollar terms, Infosys’ revenue during Q4 stood at $4,554 million, up 6.4 per cent from $4,280 million a year ago, according to a regulatory filing.
Infosys also recommended a final dividend of Rs 17.50 per equity share for the financial year ending March 31, 2023. The company’s earnings per share also increased to Rs 14.79 from Rs 13.54 in the December 2022 quarter.
In its FY24 guidance, Infosys expects revenue growth of 4-7 per cent in constant currency terms during the current fiscal. It also expects an operating margin of 20-22 per cent.
For the full financial year 2022-23, Infosys’ net profit grew by 9 per cent to Rs 24,095 crore as compared to Rs 22,110 crore in the year ended March 31, 2022. Its revenue grew by 20.7 per cent during the year to Rs. 1,46,767 crore from Rs 1,21,641 crore a year ago.
Infosys’ operating margin stood at 21 per cent, compared with 21.5 per cent a year ago and 21.5 per cent in the previous quarter.
Infosys’ IT services saw a decline of 20.9 per cent during the March 2023 quarter, as against 24.3 per cent in the December 2022 quarter and 27.7 per cent in the March 2022 quarter.
Infosys had a total employee strength of 3,43,234 as of March 31, 2023, down 3,611 from 3,46,845 as of December 31, 2022. However, it was higher than the headcount of 3,14,015 as on March 31, 2022.
Infosys CEO and MD Salil Parekh said, “Our strong performance in FY2023 is a testimony to our continued focus on digital, cloud and automation capabilities that resonated with our customers. We have launched exciting programs with our customers leveraging the Generative AI platform.”
He added that as the environment has changed, Infosys sees strong interest from its clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. “We have expanded our internal program on efficiency and cost to pave the way for higher margins in the medium term. We continue to invest in our people and to support our customers.”
Infosys Chief Financial Officer Nilanjan Roy said, “Our continued focus on cost optimization and operational efficiencies has helped us achieve an operating margin of 21 per cent in FY2023.”
He added that free cash generation was strong in Q4, led by strong collections. “In execution of our capital allocation policy, we have successfully completed the share buyback and have proposed a final dividend of `17.50 for FY23.”
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