Infosys Q4 Results, Profit Contracts, FY22 Revenue Robust

Infosys Q4 Results 2021: Infosys met its revenue and margin guidance for the ongoing fiscal, buoyed by large deal wins and increased client appetite for spending on technology as businesses moved online during the pandemic. But revenue growth for the quarter ended March came in at 2%, below street estimates, whereas margin and net profit contracted sequentially.

Infosys Q4 Results FY 2021

The company also announced a buyback, according to stock exchange filings. “With Infosys’ Q4 earnings being below expectations and the lack of positive surprise to earnings by large players like TCS and Infosys, we believe that the earnings cycle has peaked for now,” UBS wrote in its first-cut post the earnings. “This could prompt a negative reaction.

Buyback should offer downside support for the stock.” Infosys’ American Depository Receipts fell 6% in the early hours of trade on the back of the earnings disappointment. The Bengaluru-based technology services company expects revenue buoyancy to continue in fiscal 2021-22 and has estimated growth of 12-14% in constant currency terms. The operating margin is forecast to be in the range of 22-24%, lower than the 24.5% upper end of FY21.

Infosys Q4 Results Latest News

Infosys Q4 Results
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Chief Financial Officer Nilanjan Roy said, in a press briefing on the earnings, that the company will be undertaking another round of salary hikes in July after having taken one in January this year. “Coupled with return to travel and marketing costs, our (margin) guidance is still higher than that in FY20,” he said.

Infosys Q4 Results of India’s second-largest software services provider rose 1.5% over the preceding quarter to Rs 26,311 crore in the quarter ended March, according to its exchange filing. Whereas, revenue growth in constant currency terms stood at 2% for the quarter ended March (sequential growth) and at 5% for FY21.

Net profit fell 2.3% to Rs 5,078 crore, against the Rs 5,171-crore forecast. Operating income or Ebit fell 2.3% to Rs 6,440 crore. The consensus estimate for the same stood at Rs 6,532 crore. Ebit margin fell 90 basis points to 24.5% against 25.4% owing to wage hikes and cross-currency headwinds.

Infosys Q4 Results, Profit Contracts, FY22 Revenue Robust via @MasterMindUpdate
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