Infosys logs 2.4% Q4 profit growth, projects better revenue rise in FY19
Bengaluru: Infosys Ltd on Friday reported a 2.4 per cent rise in the March quarter net profit and projected better revenues in FY'19 as it focuses on digital business and increasing localisation in key markets like the US and Europe.
Eight-months into the job, Nandan Nilekani decided to shed Panaya, the Israeli firm whose $200 million acquisition had become a bone of contention between the former management led by Vishal Sikka and high-profile founders like N R Narayana Murthy.
Also, the Board will pay up to Rs 13,000 crore to shareholders including Rs 2,600 crore through special dividend. Other routes will be decided later for the remaining Rs 10,400 crore, as the company looks to meet shareholder demands for higher returns. Infosys will also continue with its policy of returning up to 70 per cent of its free cash.
Infosys on Friday reported a consolidated net profit of Rs 3,690 crore, or Rs 16.98 per share, in January-March 2018 quarter as compared to Rs 3,603 crore, or Rs 15.77 a share in the same period a year back.
The consolidated net profit for the March quarter and FY2017-18 includes the impact of Infosys' Advance Pricing Agreement with the US IRS, Infosys said.
This is the first full quarter under the new CEO Salil Parekh -- who had been tasked with restoring growth and order at the country's second largest IT services firm when he joined in January this year.
Infosys said its revenues grew 5.6 per cent to Rs 18,083 crore in the January-March quarter compared with Rs 17,120 crore in the year-ago period. Net profit was up 11.7 per cent at Rs 16,029 crore, while revenues grew 3 per cent to Rs 70,522 crore in FY2017-18 over the previous year.
"I am pleased with our healthy revenue growth, profitability, and cash generation in Q4. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees," Parekh said.
He added that over the last three months, he had spent time with Infosys' clients, employees and senior leadership.
For 2018-19, Infosys expects its revenue to grow in the range of 6-8 per cent in constant currency terms and 7-9 per cent in the US dollar terms. Sanjeev Hota, AVP (Research) at Sharekhan by BNP Paribas, said Infosys' FY'19 revenue guidance is in-line with