Infosys net down over 3% quarterly, up 6% yearly

Infosys net down over 3% quarterly, up 6% yearly

Bengaluru, April 20, 2020

Global software major Infosys reported a consolidated net profit of Rs 4,321 crore for the fourth quarter (Q4) of fiscal 2019-20, registering a 3.1 per cent sequential decline from Rs 4,457 crore a quarter ago and 6.1 per cent annual growth from Rs 4,074 crore a year ago.

In a regulatory filing to the BSE on Monday, the city-based IT firm said consolidated revenue for the quarter under review (Q4) at Rs 23,267 crore remained flat sequentially (0.8 per cent) from Rs 23,092 crore a quarter ago and rose 8 per cent annually from Rs 21,539 crore a year ago.

Under the International Financial Reporting Standards (IFRS), net income declined 5.7 per cent sequentially to $590 million from $626 million a quarter ago but grew 1.9 per cent annually from $580 million a year ago.

Gross income also declined 1.4 per cent sequentially to $3,197 million from $3,243 million but rose 4.5 per cent annually from $3,060 million a year ago.

For the fiscal under review (2019-20), consolidated net profit grew 7.7 per cent annually to Rs 16,594 crore from Rs 15,404 crore a year ago and consolidated revenue 9.8 per cent to Rs 90,791 crore from Rs 82,675 crore a year ago.

Under the IFRS or in dollar terms, net income grew 6 per cent annually to $2,331 million from $2,199 million and gross income 8.3 per cent annually to $12,780 million from $11,799 million.

Digital revenues at $1,341 million, contributed 41.9 per cent to the total revenue, with 31.7 per cent annual growth from $1.135 million a year ago and 2.6 per cent sequentially from $1,318 million a quarter ago.

For the first time in many years, the firm has not given revenue guidance for the new fiscal 2020-21, while it stopped giving quarterly outlook years ago.

"Considering the business uncertainty emanating from Covid-19, we are unable to provide guidance on revenues and margins for FY 21 at this stage. Will do after visibility improves," said the company in a statement.

The company declared a Rs 9.50 dividend per share of Rs 5 face value as final dividend for the fiscal under review, which is a testimony of a strong free cash flow of Rs 15,250 crore.

Client acquisition for the quarter remained flat at 84 as in the third quarter and 17 less than 101 a year ago, taking their active number for the fiscal to 1,411 as against 1,382 a quarter ago and 1,279 a year ago.

"I am proud of the our team that worked well to achieve 93 per cent remote working and ensuring consistent service delivery to our clients in a changing environment. Our focus on employees' health and commitment to clients helped us navigate the past few weeks," said Chief Executive Salil Parekh.

Noting that the business environment in the short-term was challenging, he said the company would emerge stronger from the pandemic crisis as there was a strong interest to consolidate with partners having agile service delivery and financial resilience.

"We completed a satisfying year on multiple counts - growth in all verticals and geographies, significant increase in large deal wins, good client mining and operational discipline," said Chief Operating Officer Pravin Rao.

Chief Financial Officer Nilanjan Roy said the focus on execution and liquidity in a period of uncertainty was supported by a strong balance sheet with $3.6 billion cash.

The company's blue chip scrip of Rs 5 face value gained Rs 23.60 when trading ended on the BSE to close at Rs 652.90 as against Friday's closing rate of Rs 629.30 and opening price of Rs 640 per share.


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