IT major Infosys reported a 12% on-year growth in net profits to Rs 5,686 crore during the January-March quarter, while revenue surged 22.7% to Rs 32,276 crore. Infosys results were slightly below street expectations as analysts had already expected the IT major to report growth led by momentum from financial services, retail, communication, energy and manufacturing. Infosys has also recommended a final dividend of Rs 16 per equity. The record date for the proposed final dividend is 1 June 2022. Infosys’ share price ended Wednesday’s trading session with gains at Rs 1748 per share, up 0.41%. The share price is down 8% so far in 2022.
Quarter in review
- Revenue came in at Rs 32,276 crore against Rs 26,311 crore a year ago. Up 22.7%.
- Operating Margin was reported at 21.5%, down from 24.5% during the same period last year.
- Net profit for the January-March quarter stood at Rs 5,686 crore, up from 5,076 crore a year ago.
- Total employees at the end March 2022 were 3,14,015, up from 2,59,619 last year.
- Free cash flow was reported at Rs 5,769 crore, down from Rs 5,824 crore, a year ago.
- Growth was supported by large deal wins with TCV of $9.5 billion.
- Infosys added 110 clients during the quarter
“Infosys delivered the 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,” 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 capitalize on the expanding market opportunity”, he added.
Financial services contributed the most towards revenue during the quarter under review, with 31.3% contribution. This was followed by 14.3% contribution from the retail segment and 12.8 from the communication vertical.
For the current fiscal year, Infosys management expects revenue growth of 13%-15% in constant currency terms and an operating margin of 21%-23%.