Tech major Infosys posted a net profit of ₹4,074 crore, beating the market expectation of ₹3,956 crore, during the fourth quarter against ₹3,690 crore a year ago, marking a year-on-year growth of 10.4%.
The company’s total revenues for the quarter increased to ₹21,539 crore, from ₹18,083 crore, a 19.11% year-on-year increase. Analysts had earlier predicted revenues at ₹21,465 crore.
The company reported a slight decline in margins to 21.4% in the quarter, as against 24.7% in the same quarter last year.
The company also announced its fiscal 2020 revenue guidance in the range of 7.5% -9.5% (in constant currency), and operating margin guidance in the range of 21% -23%.
“We have better levers to drive operational efficiency in the next fiscal. Digital pricing, use of automation and onshore and offshore mix, and localisation are going to help us in the new fiscal,” Infosys MD and CEO Salil Parekh said.
For the fiscal ended March 2019, Infosys posted a 3.86% year-on-year fall in net profit at ₹15,410 crore as against ₹16,029 crore, a year ago.
The Bengaluru-based company’s revenue from operations increased by 17.23% year-on-year to ₹82,675 crore and operating profit stood at ₹18,880 crore, a 10.1% year-on-year growth.
‘Multiple dimensions’
Addressing a press conference at the company’s Electronic City campus here on Friday, Mr. Parekh said, “We have completed the first year of our transformation journey with strong results on multiple dimensions, including revenue growth, performance of our digital portfolio, large deal wins, and client metrics. This is a reflection of our increased client relevance stemming from our focus on digital, positioning, and long-standing client relationships.”
“We have increased client relevance and shifting to digital has benefited us,” he said.
During the quarter, Infosys was able to add some seven large global logos to its digital banking platform.
“Our efforts on localisation and reskilling for digital have also started paying dividends,” Mr. Parekh added.
Following the announcement of performance numbers, Infosys’ shares rose 0.71% to close at ₹748.