Infosys Ltd. Met its revenue and margin forecast for the current fiscal year, driven by large business profits and an increased customer appetite for spending on technology as companies went online during the pandemic. Margin and net income decreased for the quarter ended March.
The Bengaluru-based technology services company expects revenue growth to continue and estimates currency-neutral growth of 12-14% for the coming fiscal year, while operating margins are forecast to be in the range of 22-24%.
The turnover of India’s second largest software service provider rose compared to the previous quarter by 1.5% to 26,311 billion rupees in the past quarter. This is comparable to the consensus estimate recorded by Bloomberg of 26.510 billion rupees for analysts. Revenue in US dollars increased 2.8% from the previous quarter to $ 3,613 million. Currency-neutral sales growth was 2% for the quarter ended March sequential growth and 5% for the fiscal year 21.
Q4 highlights (QoQ)
- Net income fell 2.3% to Rs 5.078 billion from a forecast of Rs 5.171 billion.
- Operating profit or EBIT fell 2.3% to Rs 6,440 crore. The consensus estimate for the same was Rs 6,532 crore.
- The EBIT margin fell by 90 basis points to 24.5% compared to 25.4% due to wage increases and cross-currency headwinds.
- The company passed a sales milestone of Rs 1 billion in FY21.
Fiscal year 21 deal profits hit an all-time high of $ 14.1 billion. For the quarter, the company won $ 2.1 billion in deals. “Strong momentum as we exit fiscal year 21 and a targeted strategy to accelerate digital customer journeys give us confidence in a stronger fiscal year 22,” said Salil Parekh, Managing Director and Chief Executive Officer, in a statement.
Infosys shares closed 1.91% on April 12, the day before earnings announcement, compared with benchmark S&P BSE Sensex up 14%. Markets remained closed on April 13th due to Ambedkar Jayanti.