Infosys Q4 Results 2022
Tech giant Infosys posted its results for Q4 FY22 after the market closed on April 13, 2022.
The company reported a 12.1% YoY jump in its PAT to Rs 5,695 crore from Rs 5,078 crore in the year-ago period. On a sequential basis, Infosys’ PAT dropped by 2.18% to Rs 5,695 crore from Rs 5,822 crore in Q3 FY22. The company’s revenue from operations increased by 22.6% YoY to Rs 32,276 crore from Rs 26,311 crore in the same period last year. However, the revenue from operations was down marginally on a sequential basis.
About the results
Infosys reported the highest annual growth in a decade on account of differentiated cloud services and large deal momentum. During the March quarter, the company reported new deals worth $2.3 billion while the TCV of the deals in this financial year was $9.5 billion.
The company’s total income was up 22.5% YoY to Rs 32,913 crore from Rs 26,856 crore in the year-ago period, while the total income was up by 1.6% QoQ from Rs 32,379.
The quarter under review saw Infosys’ cost of software packages doubling, resulting in the company’s total expenses increasing by 27.3% on a YoY basis.
Infosys declared a final dividend of Rs 16 per share. Together with an interim dividend of Rs 15 per share that has already been paid, the company’s total dividend payout for FY22 will be Rs 31 per share. It was higher by 14.8% compared to the previous year.
In what continues to pinch the IT industry, attrition sees no abating. Infosys’ attrition rate for Q4 FY22 rose to 27.7% against 25.5% in the previous quarter and 10.9% in the year-ago period.
For FY 22-23, Infosys has given a revenue growth guidance of 13-15% in constant currency terms while the guidance for operating margin for the year has been given at 21-23%.
Infosys Q4 Results 2022 – Hits
- PAT up 12.1% YoY to Rs 5,695 crore from Rs 5,078 crore
- Revenue from operations up 22.6% YoY to Rs 32,276 crore from Rs 26,311 crore
- Total income up 22.5% YoY, 1.6% QoQ to Rs 32,913 crore.
- Operating profit by 13.8% YoY to Rs 28,015 crore from Rs 24,622 crore
- Total dividend for FY22 up 14.8% YoY to Rs 31 per share from Rs 27 per share in the previous fiscal year
- Deals worth $2.3 billion won in Q4; $9.5 billion in FY22
- Earnings Per Share (EPS) up at Rs 52.52 from Rs 45.61 in the previous year
Infosys Results – Misses
- PAT and revenue from operations down marginally on a sequential basis
- Cost of sales up by 25.4% YoY to Rs 81,998 crore from Rs 65,413 crore in the year-ago period
- Operating margin down by 1.5% YoY to 23% from 24.5% in the year-ago period
- Marginal growth reported in businesses across the globe
What the Management says
Salil Parekh, CEO and MD, Infosys, said that Infosys annual growth and performance are driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by ‘One Infosys’ approach.
According to the management, the company continues to gain market share as a result of sustained clients’ confidence. With the acceleration of digital disruptions across industries, the company see immense potential to scale and accelerate digital capabilities to capitalize on the expanding market opportunities.
Segment-wise revenue
- Financial Services: Revenue up 12.4% YoY
- Retail: Revenue up 14.3% YoY
- Communication: Revenue up 26.4% YoY
- Energy, Utilities, Resources & Services: Revenue up 15.7% YoY
- Manufacturing: Revenue up 45.3% YoY
- Hi-tech: Revenue up 20.5% YoY
- Life sciences: Revenue up 15.1% YoY
- Others: Revenue up 3.6% YoY
Other things to know about Infosys
- The company added 22,000 new employees in Q4 FY22
- Infosys’ free cash flow crosses the $3 billion mark, Return on Equity up at 29.1%
- Infosys’ P/E ratio is at 37.75 against the industry average of 35.73 while its P/B ratio is at 9/51 against the industry average of 9.15. (As of April 13, 2022)
- The company’s dividend yield is at 1.57% against the industry average of 1.19% (As of April 13, 2022)
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Research Analyst: Bavadharini KS