Infosys Q4 results state a strong revenue growth guidance of 13 to 15% and an operating margin guidance of 21 to 23% for FY23
Infosys Q4 results have been announced, and the company delivered $16.3 billion in revenues with the highest annual growth in the last decade of 19.7% in constant currency with a robust operating margin of 23.0%. Growth was broad- based, supported by continued momentum in large deal wins with TCV of $9.5 billion. EPS grew by 15.2% in rupee terms. FCF crossed $3 billion for the year. Q4 sequential growth was 1.2% in constant currency with operating margin of 21.5%. TCV of large deal wins was $2.3 billion in Q4.
“Infosys delivered highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by ‘One Infosys’ approach. We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys”, said Salil Parekh CEO and MD. “With the acceleration of digital disruptions across industries, we see immense potential to engage and partner with clients as they transform, adapt and thrive. We will scale talent globally, invest in employees and accelerate innovation and digital capabilities to capitalize on the expanding market opportunity”, he added.
Highlights for the quarter ended 31 March 2022
• Revenues in CC terms grew by 20.6% YoY and 1.2% QoQ.
• Reported revenues at Rs 32,276 crore, growth of 22.7% YoY.
• Digital revenues at 59.2% of total revenues, YoY CC growth of 38.8%.
• Operating margin at 21.5%, decline of 3.0% YoY.
• Basic EPS at Rs 13.56, growth of 13.4% YoY.
- FCF at Rs 5,769 crore, decline of 0.9% YoY; FCF conversion at 101.3% of net profit.
Highlights for the year ended 31 March 2022
• Revenues in CC terms grew by 19.7% YoY.
• Reported revenues at Rs 1,21,641 crore, growth of 21.1% YoY.
• Digital revenues at 57.0% of total revenues, YoY CC growth of 41.2%.
• Operating margin at 23.0%, decline of 1.5% YoY.
• Basic EPS at Rs 52.52, growth of 15.2% YoY.
- FCF at Rs 22,803 crore, growth of 3.6% YoY; FCF conversion at 103.0% of net profit.
“In a year marked by intense supply side challenges, Infosys delivered strong financial performance – EPS growth of 15.2%, Free Cash Flows surpassing $3 billion and Return on Equity of 29.1%, reflecting the company’s success, driven by client-centricity and rich capabilities. The Board has proposed a final dividend of ₹16 per share, taking the total dividend for FY22 to ₹31 per share, an increase of 14.8% over prior year”, said Nilanjan Roy, chief financial officer. “With a robust demand environment ahead, we envisage making appropriate long-term investments in capability building across sales, delivery and innovation. However, we plan to neutralize some of the impact through aggressive cost optimization programs and value led pricing driven by service and brand differentiation. This, along with post- pandemic normalization of expenses, is reflected in the margin guidance”, he added.