Infosys posts 17.5% fourth-quarter profit jump

Software services company Infosys posted a 17.5% jump in quarterly net profit on Wednesday, lifted by large contract wins as the COVID-19 pandemic drove digitisation efforts in multiple sectors.

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Bengaluru-based Infosys said its consolidated net profit climbed to 50.76 billion Indian rupees ($675.39 million) in the three months to March 31, from 43.21 billion rupees a year earlier.
Revenue for the quarter rose to 263.11 billion rupees from 232.67 billion rupees.

The global leader in next-generation digital services and consulting, delivered strong FY21 performance with 5% CC growth, and growth accelerating to 9.6% in Q4 – in the face of a turbulent economic environment. Large deal TCV for FY21 peaked at an all-time high of $14.1 bn with 66% being net new. While the Operating margin for the year expanded by 3.2%, Free Cash Flows increased by 38.5% for Infosys. The Board has recommended capital return of Rs 15,600 cr (approximately $2.08 bn) including final dividend of Rs 6,400 cr (approximately $0.85 bn) and open market buyback of shares of Rs 9,200 cr (approximately $1.23 bn). Infosys share price today is Rs 1403, down Rs 23 or 1.6%.

Regarding Buyback of Equity Shares, Infosys will do via the open market route through the Indian stock exchanges, amounting to Rs 9,200 cr (Maximum Buyback Size, excluding buyback tax) (approximately $1.23 billion) at a price not exceeding Rs 1,750 per share (Maximum Buyback Price), subject to shareholders' approval in the ensuing AGM.

Salil Parekh, CEO and MD said that he is very pleased with the performance this year. He said, "Incredibly proud of our employees for the passion and commitment they displayed despite a very tough environment. Infosys have crossed a milestone of Rs 100,000 cr in revenue in FY21. Our intense focus on client relevance, growing our digital portfolio with differentiated capabilities like Infosys CobaltTM, and empowering employees have helped us emerge as a preferred ‘partner-of-choice’ for our global clients. Infosys record large deal wins stand testimony to the effectiveness of this approach."