Infosys clocks net of Rs 3,690 crore for Q4

Beating the market expectations, Bengaluru-based IT giant Infosys on Friday clocked a net profit of Rs 3,690 crore for the fourth quarter ended March 31, 2018, a rise of 2.4% year-on-year compared with Rs 3,603 crore for the corresponding quarter last year.

The company had clocked a net profit of Rs 5,129 crore for the third quarter ended December 31, 2017.

However, the jump in profits during the third quarter was backed by the reversal of tax provisions worth Rs 1,434 crore, arising out of Advance Pricing Agreement (APA) signed with US Internal Revenue Service (USIRS).

The gross profit of the company increased to Rs 6,529 crore, as against Rs 6,350 crore in the corresponding quarter last year. While the revenues of the company jumped by 5.6% to Rs 18,083 crore, from Rs 17,120 crore.

Owing to APA, the annual profits of the company jumped by whopping 11.7% to Rs 16,029 crore, as against Rs 14,353 crore last year.

The revenues of the company went up by 3% to Rs 70,522 crore, from Rs 68,484 crore last year.

On the geographical front, North America (59.4%) has been the biggest contributor to the company's revenues in the quarter, followed by Europe (24.8%), and India (2.8%).
Based on the client industry vertical, Banking and Financial Services, Insurance (BFSI) was the largest contributor to the revenues with a contribution of 33%, followed by Retail and Life Sciences (22.4%), Manufacturing and Hi-Tech (21.9%), and Energy, Utilities, Communications and Services (22.7%), during the quarter.

During the quarter, the company has recommended a final dividend of Rs 20.50 per share. The earnings per share of the company grew by 7.7%, and stood at Rs 16.98, as against Rs 15.77 in the corresponding quarter last fiscal.

"We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, energising our client's core technology landscape via AI and automation, re-skilling our employees, and expanding our localisation in markets such as US, Europe, and Australia," Salil Parekh, CEO and MD, Infosys said.

The company's shares, which have been on a bull run this week, closed 0.6% higher at Rs 1,169 per scrip on Friday on BSE.

Clients
The company has also acquired 73 new clients during the quarter, taking the number in the segment to 1,204, as against 1,173 in the previous quarter.
On the estimates front, the company set its revenue guidance at 6%-8% in constant currency, and 8.2%-10.2%.

The company has appointed Kiran Mazumdar-Shaw, Independent Director as the Lead Independent Director of the Board, with immediate effect.

Acquisition

On April 13, 2018, Infosys entered into a definitive agreement to acquire WongDoody Holding Company, Inc., a US-based digital creative and consumer insights agency for a total consideration of up to $75 million including contingent consideration and retention payouts, subject to regulatory approvals and fulfillment of closing conditions.

Dividend

For the Financial Year 2018, the Board recommended a final dividend of Rs 20.50 per share ($0.31 per ADR) amounting to Rs 5,349 crore ($821 million) including DDT. After including the interim dividend of Rs 13 per share, the total dividend for Financial Year 2018 will amount to Rs 33.50 per share resulting in a payout of Rs 8,771 crore ($1,349 million) including DDT, which will amount to approximately 70% of free cash flow for the Financial Year 2018.

The total dividend of Rs 33.50 per share is approximately 30% higher than total dividend of Rs 25.75 per share for Financial Year 2017. The aggregate dividend including the special dividend of Rs 10 per share ($0.15 per ADR) works out to
Rs 43.50 per share ($0.67 per ADR) resulting in an aggregate dividend payout of approximately Rs 11,371 crore (approximately $1,749 million), including DDT, the company said in a statement.