Infosys, the country's second largest IT services company, has reported a 2.3 percent sequential decline in consolidated profit at Rs 5,076 crore for the quarter ended March 2021, impacted by weak margin performance but supported by revenue growth.
Consolidated revenue from operations grew by 1.5 percent sequentially to Rs 26,311 crore, which was slighly below the CNBC-TV18 poll estimates that was pegged at Rs 26,620 crore.
"Consolidated revenue in constant currency grew by 2 percent and the topline growth in dollar terms was at 2.8 percent quarter-on-quarter," said Infosys.
The dollar revenue growth increased to $3,613 million in March quarter 2021, compared to $3,516 million in previous quarter, the company added.
The digital revenues at 51.5 percent of total revenues increased 5.6 percent sequentially to $1,859 million in Q4FY21, but core revenue dropped 0.1 percent QoQ to $1,754 million during the quarter.
"We have crossed a milestone of Rs 1,00,000 crore 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," said Salil Parekh, CEO and MD.
"A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22," he added.
Infosys has maintained its revenue growth guidance in constant currency at 12-14 percent for financial year 2021-22, while EBIT margin growth forecast for full year also retained at 22-24 percent.
The company closed its financial year 2020-21 with consolidated profit at Rs 19,351 crore on revenue of Rs 1,00,472 crore, registering a 16.6 percent and 10.7 percent growth compared to previous year. The operating profit in the year grew by 27.1 percent to Rs 24,622 crore and margin expanded 320 bps to 24.5 percent against previous year.
“FY21 was a landmark year with superior shareholder returns backed by robust operating metrics and strong growth across revenue, margins and free cash flows," said Nilanjan Roy, CFO.
Large deal total contract value for FY21 peaked to an all-time high of $14.1 billion with 66 percent being net new, said Infosys, adding the Q4 deal wins size stood at $2.1 billion.
The operating profit declined 2.3 percent sequentially to Rs 6,440 crore in the quarter ended March 2021, and margin contracted 90 bps QoQ to 24.5 percent during the quarter, said Infosys, adding the operating expenses increased 5.7 percent QoQ to Rs 2,707 crore in Q4FY21.
The company has approved share buyback of up to Rs 9,200 crore at a maximum price of Rs 1,750 per share, and recommended a dividend of Rs 15 per share for FY21.
As of March 2021, its promoter and promoter group held 12.95 percent equity stake in Infosys and the rest of shareholding is held by public including financial institutions, mutual funds and foreign portfolio investors.
Infosys shares have rallied 11 percent in 2021, outshining the benchmark Nifty IT index that gained 6.6 percent in the same period, supported partly by weakness in the rupee that dropped to its lowest since June 2020, and earnings growth.
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The stock fell 2 percent on April 13 ahead of its quarterly earnings and after TCS reported in-line numbers for the March quarter.