India’s second largest IT company Infosys reported its fourth quarter revenue of Rs 37,441 crore, down 2.3 per cent from Rs 38,318 crore in the previous quarter, with net profit of Rs 6,128 crore. Infosys net profit for Q4FY23 missed estimates of Rs Rs 6,553 crore according to CNBCTV18 poll, falling about 7.0 per cent from the previous quarter’s Rs 6,586 crore. The IT firm also fell short of revenue poll expectations of Rs 38,830 crore for the quarter ended March 2023.
According to analysts and brokerage firms, the IT firm was expected to clock a profit rise in the range of 14.2- 21.7 per cent on-year during the March quarter. EBIT margin was also expected to expand for the IT firm, albeit marginally. Operating profit, meanwhile, came at Rs 7,877 crore as against Rs 6,956 crore reported in the March 2022 quarter and Rs 8,242 crore in the previous quarter. Even as Infosys missed its revenue estimates for FY23, it managed to meet its operating margin target. “Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0 per cent in FY23,” said Nilanjan Roy, Chief Financial Officer, Infosys. Also, at constant currency, Infosys’ revenue grew by 8.8 per cent on-year during the March 2023 quarter.
Infosys today declared a final dividend of Rs 17.50 per equity share for the financial year ended March 31, 2023. “The record date for the purposes of the Annual General Meeting and payment of final dividend is June 2, 2023. The dividend will be paid on July 3, 2023,” Infosys said in a regulatory filing. The company also announced the date of its 42nd Annual General Meeting as June 28, 2023.
Infosys’ order book; 2 new clients in $100 million basket
In the March quarter, Infosys won TCV deals worth $2.1 billion and for FY23, the total deal bagged by the IT firm were worth $9.8 billion. “As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline,” Salil Parekh said.
Infosys also added 2 new clients in the $100 million basket during the fourth quarter.
Which segments, markets performed better for Infosys?
While Infosys experienced a hit in the financial services sector in the March quarter as revenue fell 1.7 per cent on-year, communication vertical too reported a drop in revenue to the tune of over 2 per cent. The manufacturing segment witnessed a growth at 22 per cent, followed by energy and life sciences at 14 per cent each and the retail sector registered a 10 per cent growth on-year. In terms of geographical areas, North America reported a 5.7 per cent growth on-year basis, Europe saw a 14 per cent growth. India, meanwhile, saw an over 13 per cent drop in the quarter.
Attrition rate at Infosys
Infosys’ headcount as of March 31, 2023 stands at 3,43,234 as against 3,46,845 till December 31, 2023. “Attrition rate for the March quarter stood at 20.9 per cent as against 24.3 per cent sequentially,” the company said. The company’s headcount growth for the year 2022-2023 was 29,219 employees, 46 per cent lesser than previous year’s net addition of 54,396.
Earlier on Wednesday, TCS reported its fiscal fourth quarter net profit at Rs 11,392 crore, up 5% from the previous quarter. TCS net profit missed Rs 11,562 crore for Q4FY23 estimated by CNBCTV18 poll. TCS Revenue too fell a bit short of poll expectations, recording at Rs 59,162 crore in the fiscal fourth quarter, rising just about 1.6% from the previous quarter’s Rs 58,229 crore.