Infosys Q4 net profit up 2.4%

Infosys Q4 net profit up 2.4%

Infosys Q4 net profit up 2.4%

India's second largest IT services company Infosys on Friday reported 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.

Revenues for the quarter increased by 5.6% to Rs 18,083 crore. The company said that FY19 revenue guidance in constant currency terms will be in the range of 6%-8%. The operating margin will be in the range of 22%-24%, the company said in a statement.

On a sequential basis, the company's net profit declined 28.1% compared to Rs 5,129 crore for the third quarter ended December 31, 2017.

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 Advance Pricing Agreement (APA) signed by the company with the US Internal Revenue Service (USIRS), 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%).

The new roadmap

Salil Parekh, CEO and MD, has set up a four-point roadmap for the company in the days ahead.

"We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today $2.79 billion in revenue, Energizing 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," Parekh, who took charge of the company in January this year, told reporters.

Infosys also appointed Kiran Mazumdar-Shaw, Independent Director as the Lead Independent Director of the Board, with immediate effect. 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.


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%.