Infosys Q4 net profit rises 12%, company estimates FY23 revenue growth at 13-15%

Infosys reported a 12% rise in net profit for the quarter ended March to ₹5,686 crore while revenue grew 22.7% to ₹32,276 crore., from a year earlier.

Net profit climbed 14.3% to ₹22,110 crore for the full year ended March, as revenue rose 21% to ₹1,21,641 crore.

The technology services firm estimated its FY23 revenue would grow 13-15%, with an operating margin band 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 visible given strong net hiring, broad-based growth across industries, continued large client additions and robust revenue growth guidance,” he added.

Addressing the media on Wednesday, company CEO and MD Salil Parekh said, “We delivered the highest annual growth in a decade with broad-based performance. We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys.”

The company said it continued to see momentum in the large deal pipeline with a total contract value of $9.5 billion for FY22 and $2.3 billion for the just ended quarter.

During Q4, the tech major reported an operating margin of 21.5%, a year-on-year decline of 3%. Operating margin for FY22 was at 23%, within the guided range of 22-24%

“We are comfortable in maintaining this band,” said CFO Nilanjan Roy. “As we get into discussions with clients during renewals, we will look at pushing the margins. In a year marked by intense supply-side challenges, Infosys delivered strong financial performance.”

‘Attrition zooms’

The company’s attrition zoomed to 27.7% on an last-tweve-months basis, Infosys said. “We will see an improvement in attrition in the coming quarters,” it added.

Infosys hired 85,000 freshers in India and overseas in FY22 and plans to hire upwards of 50,000 freshers in the current fiscal. In Q4, the company reported net hiring of 22,000.

‘No impact of Russia-Ukraine conflict’

Infosys said it had no serious engagement in the Russian market as of now, except for servicing some global clients who have some exposure in the country and therefore, the Russia-Ukrain conflict ‘had not impacted business’.

“We have no wok with any Russian client today and we have no plans for any, going ahead,’” said Mr. Parekh.

However, he said the company had plans to expand its presence in Eastern Europe and was focussed on localisation in Poland and Romania.