India’s second largest IT firm Infosys has reported results better than expectations as net profit came in at Rs 4,070 crore, as against an ET Now poll of Rs 3,957 crore.
India’s second largest IT firm Infosys has reported results better than expectations as net profit came in at Rs 4,078 crore, as against an ET Now poll of Rs 3,957 crore. The firm has set FY 20 growth guidance at 7.5%-9.5% versus CNBC TV18 poll of 8-10%. The EBIT margin guidance for FY20 was maintained as compared to the channel’s poll. The total revenues came in at Rs 21,539 crore, implying a growth of 19.1% on-year, and 0.6% on-quarter. Motilal Oswal had earlier estimated the firm to report strong results on the back of ramp-up in large Communications deal. We bring to you key figures in a nutshell.
Infosys Q4 results: Key figures in a nutshell
- The total revenues were of the firm came in at Rs 21,539 crore, implying a growth of 19.1% YoY and 0.6% QoQ.
- The net profit was higher by 13% on-quarter to Rs 4,078 crore. The operating profit was Rs 4,618 crore, a growth of 3.3% on-year and decline of 4.4% on a QoQ basis.
- Basic EPS was Rs 9.37, implying a growth of 10.4% on-year and 12.9% on quarter.
- Q4 19 Digital revenues came in at $1,035 million (33.8% of total revenues), registering year-on-year growth of 41.1% and sequential growth of 9.7% in constant currency.
- The firm has announced a final dividend of Rs 10.50 per share.
- FY 20 revenue guidance in the range of 7.5%-9.5% in constant currency. FY 20 Operating margin guidance in the range of 21%-23%.
- “We had another quarter of over $1.5 bn large deal TCV in Q4, as a result of which FY 19 TCV doubled over FY 18. Realization per billed employee was steady which reflects increasing usage of automation in core services and faster growth in newer digital services. Overall attrition remains high and we are continuing our focus on arresting the same,” COO, Pravin Rao said.
- CEO Salil Parekh noted that planned investments have started yielding benefits. “As we look ahead into fiscal 2020, we plan to deploy various measures of operational efficiencies across the business.”
- Taking specific stock of the results, he said that Infosys has completed the first year of our transformation journey with strong results on multiple dimensions including revenue growth, performance of our digital portfolio, large deal wins, and client metrics. “This is a reflection of our increased client relevance stemming from our focus on digital, positioning, and longstanding client relationships,” Parekh added.