Infosys Ltd Q4 net up 12.02% at Rs5,686cr on differentiated cloud services and large value deals

13 Apr 2022 , 06:27 PM

Infosys Ltd reported 22.67% growth in total sales revenues for the Mar-22 quarter on consolidated basis at Rs32,276cr. On a sequential basis, the revenues were up by 1.28%. In terms of verticals contributing to revenues, BFSI contributed Rs10,096cr, Retail Rs4,617cr, Communications Rs4,132cr, Energy Rs3,872cr and Manufacturing Rs3,816cr.

BFSI also contributed the most to the EBITDA in the Mar-22 quarter at Rs2,578cr followed by Retail at Rs1,516cr and Energy and Rs1,111cr. Infosys has provided 13-15% revenue growth guidance and 21-23% operating margin guidance for FY23. In Q4 TCV of large deals stood at $2.3 bn.

For the Dec-21 quarter, the consolidated operating profits were up 8.01% at Rs6,956cr. For Q4 Infosys reported operating margins of 21.5% (lower 300 bps yoy) and for FY22 operating margins stood at 23% (down 150 bps yoy) on account of higher manpower and attrition costs.

Overall revenues of Infosys grew by 20.6% yoy and 1.2% sequentially for the fourth quarter in constant currency terms. Digital revenues accounted for 59.2% of total revenues with constant currency growth of 38.8% yoy. Full year digital revenue growth in CC terms stood at 41.2%. Free Cash Flows (FCF) for Q4 at $761 million was down 4.4% yoy, while for the full year the FCF conversion into net profit stood at 102.9%.

The consolidated Profit after tax (PAT) for the Mar-22 quarter was up 12.02% at Rs5,686cr on the back of higher revenue advantage getting neutralized by higher costs on the employee and attrition front. The company declared final dividend of Rs.16 per share taking the total dividend pay-out to Rs31 per share.

A sum of Rs13,000cr was distributed as dividends to shareholders during the year. Large deal TCV for full year stood at $9.5bn. North America accounted for 61.4% or revenues while Europe contributed 25.2% in Q4. The one area of worry for Infosys is the sharp spike in attrition rates to 28% in the fourth quarter. PAT margins tapered from 19.29% in the Mar-21 quarter to 17.62% in the Mar-22 quarter. Even on a sequential basis, the net profit margins were lower by 61 basis points.

Financial highlights for Mar-22 compared yoy and sequentially

	Infosys Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 32,276	₹ 26,311	22.67%	₹ 31,867	1.28%
Operating Profit (Rs cr)	₹ 6,956	₹ 6,440	8.01%	₹ 7,484	-7.06%
Net Profit (Rs cr)	₹ 5,686	₹ 5,076	12.02%	₹ 5,809	-2.12%
Diluted EPS (Rs)	₹ 13.54	₹ 11.94		₹ 13.83
OPM	21.55%	24.48%		23.49%
Net Margins	17.62%	19.29%		18.23%