Infosys Profit Rises 17% To Rs 5,076 Crore In Q4, Approves Share Buyback Proposal
Infosys' revenue from digital business came in at 51.5% of total revenues Infosys won large deals worth a total of $2.1 billion in March quarter Infosys' board approved a share buyback proposal of Rs 9,200 crore
The country's second largest software services company - Infosys - on Wednesday, April 14, 2021, reported an annual increase of 17 per cent in its net profit at Rs 5,076 crore on the back of large contract wins as the COVID-19 pandemic drove digitisation efforts in multiple sectors. The Bengaluru-based company had reported profit of Rs 4,335 crore during the same quarter last year. However, on a sequential basis its profit registered a decline of 2.32 per cent.
Infosys' revenue from operations rose 12.5 per cent annually to Rs 26,856 crore and on a sequential basis revenue rose 1.2 per cent. In dollar terms, revenues came in at $3,613 million, registering an annual growth of 13 per cent.
Its revenue from digital business came in at 51.5 per cent of total revenues.
Going ahead, Infosys has guided for revenue growth in the range 12-14 per cent in constant currency terms while operating margins are expected to be in range of 22-24 per cent in financial year 2022.
The company won large deals worth a total of $2.1 billion in the quarter and added 130 clients, up from 84 additions in the same period last year.
"I am very pleased with our performance this year and incredibly proud of our employees for the passion and commitment they displayed despite a very tough environment. We have crossed a milestone of Rs 100,000 crore in revenue in FY21. Our intense focus on client relevance, growing our digital portfolio with differentiated capabilities like Infosys CobaltTM, and empowering employees have helped us emerge as a preferred 'partner-of-choice' for our global clients. Our record large deal wins stand testimony to the effectiveness of this approach", Salil Parekh, CEO and MD at Infosys said in a statement.
Infosys' board of directors approved a share buyback proposal of Rs 9,200 crore and also a final dividend of Rs 15 per equity share.
"The Board has recommended capital return of Rs 15,600 crore (app. $2.08 billion) including final dividend of Rs 6,400 crore (app. $0.85 billion) and open market buyback of shares of Rs 9,200 crore," Infosys said while announcing buyback and dividend for fiscal 2020-21.
Infosys will buy back shares at Rs 1,750 per share which is at a premium of 25 per cent to Tuesday's closing price of Rs 1,398.60 on the BSE.
Infosys shares had closed 2 per cent lower ahead of earnings announcement on Tuesday.