Infosys Q4 Net Income Up 12%, Company Estimates FY23 Revenue Growth at 13-15%


Technology services firm hired 85,000 freshmen in FY22; plans to hire 50,000 freshmen this fiscal year

Technology services firm hired 85,000 freshmen in FY22; plans to hire 50,000 freshmen this fiscal year

Infosys reported a 12% increase in net profit to £5,686 billion for the quarter ended March, while revenue rose 22.7% year-on-year to £32,276 billion.

Net profit rose 14.3% to £22,110 billion for the full year ended March, while revenue rose 21% to £1,21,641 billion.

The technology services company estimated its revenue would grow 13-15% in FY23 with an operating margin of 21-23%.

“Infosys numbers missed our estimates in a seasonally weak quarter,” said Ashis Dash, IT research analyst at Sharekhan by BNP Paribas. “Nonetheless, the strength of demand is evident given strong net hires, broad-based growth across all industries, continued additions of large accounts and solid revenue growth guidance,” he added.

Salil Parekh, the company’s CEO and MD, told media on Wednesday, “We delivered the highest annual growth in a decade with a broad-based performance. We continue to gain market share because of our customers’ continued trust in our ability to successfully navigate their digital journey.”

The company said it continues to see momentum in the pipeline for large deals, totaling $9.5 billion in contracts for FY22 and $2.3 billion for the quarter just ended.

In the fourth quarter, the tech major reported an operating margin of 21.5%, down 3% year over year. Operating margin for FY22 was 23%, within guidance range of 22-24%

“We feel comfortable maintaining this bond,” said Chief Financial Officer Nilanjan Roy. “As we engage in discussions with clients during renewals, we will look to increase margins. In a year marked by intense supply-side challenges, Infosys delivered a strong financial performance.”

‘Attrition Zooms’

According to Infosys, the company’s trailing-12-month turnover rose to 27.7%. “We will see improvement in turnover in the coming quarters,” she added.

Infosys hired 85,000 freshmen in India and overseas in FY22 and plans to hire over 50,000 freshmen in the current fiscal year. In the fourth quarter, the company reported net hires of 22,000.

“No impact of the Russia-Ukraine conflict”

Infosys said it currently has no serious engagement in the Russian market other than servicing a few global clients who operate in the country to some extent, and therefore the conflict between Russia and Ukraine has “no business impact”.

“We don’t have a wok with any Russian customer today and we don’t have any plans to do it,” said Mr. Parekh.

However, he said the company has plans to expand its presence in Eastern Europe and is focusing on localization in Poland and Romania.

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