Infosys misses FY20 revenue guidance; 8 takeaways from company's Q4 scorecard

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26 Aug, 2025 12:21

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IT major Infosys, which on April 20 reported the results for the March quarter, missed its FY20 revenue guidance as full-year revenue growth in constant currency was 9.8 percent and 8.3 percent in dollar terms due to lockdown in major parts of the world to limit the spread of novel coronavirus.

The company had estimated full-year revenue growth in constant currency in the range of 10-10.5 percent over FY19.

The company said it is making every effort to tackle the turbulence caused by the coronavirus outbreak.

"Infosys continues to make every effort to deliver the certainty of its services even in these times of uncertainty. Businesses, from various parts of the globe, have acknowledged these efforts and expressed their appreciation for the services and support they are receiving from Infosys," the company said.

Here are eight takeaways from the company's Q4FY20 scorecard:

The numbers: Infosys reported a profit of Rs 4,321 crore for the quarter ended March 2020, 3.1 percent less compared to December quarter 2019, impacted by lower other income (down 25.8 percent) and tax benefits in the previous quarter.

Profitability was ahead of the CNBC-TV18's analysts' poll which was pegged at Rs 4,230 crore due to lower tax cost (down 16.1 percent QoQ).

Final dividend: The company announced the final dividend of Rs 9.50 per share and said it is a testimony of a strong free cash flow performance for FY20.

Revenues by offering: As per the press release, the company's digital revenues stood at 41.9 percent of total revenues for the March quarter. Its digital segment's revenue rose 29.6 percent YoY, coming at $1,341 million in the March quarter of FY20 against $1,035 million in the corresponding quarter of the previous financial year. In CC terms, it was 31.7 percent YoY.

On the other hand, core revenue declined to $1,856 million in Q4FY20 against $2,025 million in Q4FY19. Core revenue declined 8.3 percent YoY. In CC terms, it was down 6.6 percent YoY.

Revenues by business segments: Life sciences segment grew 11.7 percent YoY, while hi-tech and manufacturing segments grew 7.3 percent YoY and 5.8 percent YoY, respectively, in Q4FY20.

Communication segment (down 0.1 percent YoY) remained almost flat during the said quarter

India lead growth among geographies: As per the release, revenue from the Indian market grew 19.5 percent YoY during the quarter, while that of Europe and North America grew 6.4 percent and 5.1 percent YoY, respectively.

In the rest of the geographies, the company's revenues declined by 4.8 percent YoY.

Headcount: The company had 2,42,371 employees in March quarter of FY20 against 2,43,454 employees in the December quarter of FY20 and 2,28,123 employees of the March quarter of FY19.

Annualised consolidated attrition rate was 20.7 percent in Q4FY20 against 19.6 percent in Q3FY20 and 20.4 percent in Q4FY19.

Management commentary: The management underscored the challenges but showed confidence that it will endure the headwinds and come out stronger.

“We had an exceptional year in the financial year 2020 with a growth of 9.8 percent and an operating margin of 21.3 percent. While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger,” CEO and MD Salil Parekh said.

“We completed a satisfying year on multiple counts–growth in all verticals and geographies, a significant increase in large deal wins, good client mining and operational discipline, COO Pravin Rao said.

The company remained focused on execution excellence in a period of high uncertainty, CFO Nilanjan Roy said. "Our relentless focus on liquidity will be supported by our strong balance sheet of $3.6 billion cash, backed by accelerated cost take-outs and operational rigor," he said.

Board changes: The company said DN Prahlad, independent director, has resigned. It announced the appointment of Uri Levine as an independent director, effective April 20, 2020, based on the recommendations of the board's nomination and remuneration committee. The appointment is for a period of three years and is subject to the approval of shareholders.