Infosys Q4 results: Profit rises 6% to Rs 4,321 crore; firm suspends guidance

https://economictimes.indiatimes.com/markets/stocks/earnings/infosys-q4-results-profit-rises-6-to-rs-4321-crore-firm-suspends-guidance/articleshow/75251808.cms

NEW DELHI: IT major
Infosys on Monday reported a 6.10 per cent year-on-year (YoY) rise in consolidated profit for the March quarter at Rs 4,321 crore compared with Rs 4,074 crore in the same quarter last year. Analysts in an ET NOW poll had projected the number at Rs 4,382 crore.

Revenue for the quarter rose 8 per cent to Rs 23,267 crore, the company said in a filing.

Infosys said considering business uncertainty emanating from Covid-19, it is unable to provide guidance on revenues and margins for FY 21 at this stage. It will provide guidance after visibility improves.

Operating profit margin came at 21.20 per cent in Q4FY20 against 21.40 per cent in Q4FY19.

Salil Parekh, CEO and MD, Infosys said, “We had an exceptional year in 2020 with growth of 9.8 per cent and operating margin of 21.3 per cent. While the immediate short-term will be challenging, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger.”

The IT major also announced a final dividend of Rs 9.50 per share.

“We continue to remain focused on execution excellence in a period of high uncertainty. Our relentless focus on liquidity will be supported by our strong balance sheet of $3.6 billion cash, backed by accelerated cost take-outs and operational rigor,” said Nilanjan Roy, CFO. He added that the final dividend was a testimony of a strong free cash flow performance for FY20.

The company had Rs 27,300 crore cash as of March 31, while it signed a $1.65 billion of large deals in January-March period.

Attrition rate for January-March stood at 20.7 per cent against 20.4 per cent last fiscal. Infosys had 2,42,371 employees as of March 31, against 2,28,123 for the same quarter ended last year.

“We will honour all job offers made by the company,” Infosys said.

In dollar terms, revenue increased 4.5 per cent to $3,197 million. On the other hand, the figure inched lower by 1.4 per cent on a sequential basis.

The IT major also announced the appointment of Uri Levine as an independent director of the company with effect from April 20. The appointment is for a period of three years and is subject to the approval of shareholders.

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