Infosys Ltd, India's second-largest IT services company, reported a net profit of Rs 7,969 crore for the fiscal fourth quarter, beating Street estimates. The company reported revenue of Rs 37,923 crore in the three months ended March 31, according to an exchange filing on April 18.
Analysts projected a profit of Rs 6,128 crore on revenue of Rs 38,413 crore, based on an average of 13 brokerage estimates.
Infosys stock rose 0.34 percent today to end at Rs 1,419.25, ahead of the quarterly earnings report.
Infosys also declared a final dividend of Rs 20 per equity share and a one-time dividend of Rs 8 per share.
The company also announced the acquisition of In-Tech Holding GmbH, an engineering, research and development (ER&D) services provider.
“Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support," said Salil Parekh, CEO and MD. “I would like to thank our 317,000
employees across the world that are working to create value for our clients.”
"Very comfortable with our large deal wins," said Parekh, adding "Hiring models has changed significantly over the years. Doing more than half of the hiring off campus."
“Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual dividend per share," said Jayesh
Sanghrajka, CFO.
Additionally, Infosys is set to acquire "in-tech", an engineering R&D services provider with a focus on the German automotive industry.
“This strategic investment further strengthens Infosys’ engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey,” the company said in the statement.
The financial details of the deal were not disclosed by the company.
Also read: TCS, Infosys, Wipro together lost 63,759 employees in FY24
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