Infosys skids after Q4 PAT falls 2.3% QoQ to Rs 5,076 crore

Infosys declined 3.20% to Rs 1,353.90 after the IT major reported a 2.3% decline in consolidated net profit to Rs 5,076 crore on 1.5% increase in revenues to Rs 26,311 crore in Q4 March 2021 over Q3 December 2020.

The company’s consolidated net profit rose 17.5% and revenues rose 13.1% in Q4 March 2021 over Q4 March 2020.

Operating profit fell 2.3% quarter-on-quarter (Q-o-Q) and it jumped 30.7% year-on-year (Y-o-Y) to Rs 6,440 crore in Q4 March 2021. Operating margin stood at 24.5% in Q4 March 2021, lower than 25.4% in Q3 December 2020 and higher than 21.2% in Q4 March 2020.

For the full financial year, Infosys delivered a 5% constant currency (CC) growth. Large deal TCV (total contract value) for FY21 peaked to an all-time high of $14.1 billion with 66% being net new.

It reported 16.6% rise in consolidated net profit to Rs 19,351 crore on 10.7% jump in revenues to Rs 1,00,472 crore in the year ended on 31 March 2021 over the year ended on 31 March 2020. Operating profit improved by 27.1% year-on-year (Y-o-Y) to Rs 24,622 crore and operating margin expanded 320 bps Y-o-Y to 24.5% in FY21 over FY20.

In its outlook for FY22, Infosys has guided for 12% to 14% sales growth in constant currency terms in 2021-22 and an operating margin band of 22% to 24%.

A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22,” Salil Parekh, CEO and MD said.

Despite the disruptions, we continue to execute seamlessly with broad-based momentum across verticals. This has led to healthy volume growth and record utilization in a seasonally soft quarter,” said Pravin Rao, COO.

Further, the company’s board approved a proposal to buyback equity shares worth upto Rs 9,200 crore for a price not exceeding Rs 1,750 per equity share. The total buyback size is less than 15% of the aggregate of the total paid-up share capital and free reserves of the company. As on 31 March 2021, promoters held 12.95% in Infosys.

The buyback price of Rs 1,750 is at a premium of 25.13% compared with the scrip’s closing price of Rs 1,398.60 on Tuesday (13 April 2021).

Meanwhile, Infosys announced a final dividend of Rs 15 per share.

Infosys reported 15.2% voluntary attrition rate for the quarter ended 31 March. It was 10% during the October-December quarter, Infosys said in the regulatory filing. The total number of employees at Bengaluru-based company stood at over 2.59 lakh as on 31 March, 2021.

Infosys is a global leader in next-generation digital services and consulting.

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