Infosys, India's second-largest IT services company, reported a 20.8% increase in consolidated net profit for the fourth quarter ended March 31, 2023, to Rs 8,501 crore, compared to Rs 7,039 crore in the same period last year. The company's revenue from operations grew by 16.2% year-on-year to Rs 46,750 crore, driven by strong demand for digital services and cloud solutions.
Key Financial Highlights
The company's operating margin for the quarter stood at 21.5%, a decline of 1.2 percentage points from the previous year due to higher employee costs and subcontracting expenses. Infosys added 99 new clients during the quarter, including 10 in the $100 million plus category. The total contract value (TCV) of large deal wins was $2.1 billion, with a healthy mix of new and existing clients.
Segment Performance
Among verticals, financial services grew by 14.2%, retail by 12.8%, and communication by 11.5%. The company's digital revenue accounted for 62.8% of total revenue, growing 24.4% year-on-year. Geographically, North America contributed 60.1% of revenue, Europe 25.2%, and rest of the world 14.7%.
Outlook and Guidance
For the fiscal year 2024, Infosys expects revenue growth of 4-7% in constant currency terms, with operating margins projected at 20-22%. The company also announced a final dividend of Rs 17.50 per share and a share buyback of Rs 9,300 crore. CEO Salil Parekh expressed confidence in the company's strategy to capture growth in the evolving technology landscape, despite macroeconomic uncertainties.
Infosys' board also approved the appointment of Bobby Parikh as an additional director, effective May 1, 2023. The company's attrition rate declined to 20.9% from 27.7% in the previous quarter, indicating improved employee retention.
