Infosys Limited, the second-largest software services company in India, announced its Q4 results on Wednesday, posting a YoY PAT (profit after tax) increase of 8% to Rs 6,128 crore for the period ended March 31, 2022.
Revenue Growth and Guidance for FY24
The company's revenue grew 15% YoY to Rs 28,060 crore, with a robust operating margin of 23.7%. Infosys's operating cash flow was Rs 7,301 crore, and its free cash flow was Rs 6,490 crore for Q4. Infosys's Board of Directors also approved a final dividend of Rs 35 per share.
For FY24, Infosys pegged its revenue growth guidance at 4-7% in constant currency terms, which is lower than the Street's expectation of over 7%. The company expects its operating margin for FY24 to be in the range of 22-24%.
Deal Wins and Attrition Rate
Infosys reported deal wins worth $3.6 billion for Q4, with 31 new clients added to its portfolio. The company's total contract value (TCV) for the quarter was $2.8 billion.
The attrition rate for Infosys for Q4 was 10.4%, down from 11.7% in the previous quarter. The company also added 8,372 employees during Q4, taking its total headcount to 3,22,619.
Investor Outlook
Despite the lower-than-expected revenue guidance, analysts remain optimistic about Infosys's growth prospects. The company's recent acquisitions and partnerships in cloud, data, and analytics have helped strengthen its digital capabilities and improve its competitiveness in the market.
Infosys's strategic focus on delivering high-quality services and expanding its digital offerings is expected to drive its revenue growth in the coming quarters.
Overall, Infosys's Q4 results showcase a strong performance, with significant revenue growth and robust operating margins. Despite the lower revenue guidance for FY24, the company's deal wins, expanding client base, and focus on digital transformation are expected to drive its growth in the future.
