Infosys CEO and Managing Director Salil Parekh, right, with Infosys CFO Nilanjan Roy. Photo: AFP / The TImes of India

Infosys, India’s second-largest software services provider, posted a 12% rise in consolidated net profit for the fourth quarter. The Bangalore-based IT giant posted a net profit of 56.86 billion rupees (US$750 million) in the March quarter against 50.76 billion rupees in the same period last year.

However, on a sequential basis, net profit declined 2.11% from 58.09 billion rupees in the December quarter.

Infosys’ revenue grew 22.7% to 322.76 billion rupees ($4.24 billion) against 263.11 billion rupees in the same period last year. It was also higher than the preceding December quarter (318.67 billion rupees). The company said the growth was broad-based led and large deal signings from January to March were $2.3 billion, up from $2.1 billion a year earlier.

Infosys CEO Salil Parekh said: “We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys.”

On an annual basis, Infosys’ net profit was up 14.3% to 221 billion rupees, as revenue rose by 21% to 1.21 trillion rupees, compared with the previous year. The total contract value for the fiscal year was $9.5 billion.

“Infosys delivered its highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by ‘One Infosys’ approach,” Salil Parekh said.

Infosys has pegged revenue growth outlook at 13-15% for 2022-23 and an operating margin of 21-23% in FY23.

“Our sustained momentum in FY22, large deal wins, robust deal pipeline and client confidence in our capabilities give us comfort to provide a guidance of 13-15% for growth in fiscal 2023 in constant currency terms,” Salil Parekh said.

Infosys board approved a final dividend of 16 rupees per share, taking the total dividend for FY22 to 31 rupees per share, an increase of 14.8% over the previous year.

Russia operations

The company announced it would transition its businesses out of Russia in the wake of the invasion of Ukraine and pursue alternative locations, mainly in Eastern Europe. Infosys does not have clients in Russia and has less than 100 employees. They mainly service global clients.

Many global IT and software players like Oracle and SAP have either suspended or paused all operations in Russia. Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in Russia.