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Country's top IT services company Infosys Ltd announced its financial results for the quarter ended March 31, 2023 (Q4FY23). The company's net profit rose 8 percent to Rs 6,128 crore while its revenue from operations increased 16 percent (YoY) in the said quarter.
Meanwhile, Infosys' rival and biggest IT company TCS had on April 12 reported a 14.8 percent year-on-year (YoY) increase in consolidated net profit at Rs 11,392 crore for Q4FY23.
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The IT firm's top 10 clients contributed 20.10 percent to the revenues in the March quarter. On the other hand, the top 25 clients contributed 34.7 per cent to the company’s top line during the quarter under review. The company added clients in the $1 million (922 from 912), $10 million (298 from 294) and $100 million (40 from 38) segments on a sequential basis. The number of $50 million-plus clients declined to 75 from 79 on a QoQ basis.
Here's whatInfosysCEOSalilParekhmentioned in press briefing post earnings declaration
--WithinInfosyswe have a strong leadership team and we’re seeing more at the next level
--There was some one time impact in Q4; see somestabilisationin March
--US banking issue impacted decisions acrossthe Board
--We are working closely with clients; their connect will help us massively
--We have a large pipeline
--There is slowing in deals but our pipeline remains strong
"Our operational margin for the full year is at 21%. Expect Generative AI to bring more opportunities. Had one-time impact on revenue due to decline in combination of cancellation & some specific issue."
Here's more from Infosys press briefing
Infosys CEO Salil Parekh says company saw "unplanned rampdowns" across diff sectors - telco, hi-tech, retail and financial services.
--Financial services sector revenue fell 1.7 percent YoY. Banking and financial services make for close to 26 percent of the total revenue.
--The communication vertical revenue dropped 2 percent YoY.
--The manufacturing vertical saw the best growth at 22 percent
--Energy and life sciences revenue increases at 14 percent each.
Operating profit for the company came at Rs 7,877 crore, up 13 percent compared to Rs 6,956 reported in the March 2022 quarter. In the previous quarter, operating profit stood at Rs 8,242 crore. Operating margincontracted0.5 percent on a yearly as well as sequentially to 21 percent.
At constant currency, the company's revenue grew by 8.8 percent on-year during the fourth quarter, and by 15.4 percent during the entire fiscal year.
Infosys' headcount growth for the year 2022-2023 was 29,219 employees, down 46 percent from last year’s net addition of 54,396.
With this, Infosys' headcount stands at 3,43,234 as of March 31, 2023. This is the first time since the Covid-hit quarter of FY21 that Infosys is ending a quarter with fewer employees than it had at the end of the previous quarter. In the same quarter last year, Infosys added 21,948 employees.
More details here
In the March quarter, Infosys bagged TCV deals worth $2.1 billion while for FY23, the total deal wins were worth $9.8 billion.
Infosys forecast slower revenue growth for the current fiscal year compared with analysts' expectations, amid a turmoil in the US banking sector that has prompted clients to tighten spending.
India's second-largest IT services firm expects revenue growth of 4%-7% for the fiscal year ending March 2024.
"Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0% in FY23, said Nilanjan Roy, Chief Financial Officer.
“Free cash generation in Q4, led by robust collections, was strong."
