BENGALURU: IT services company Infosys on Thursday reported a 7.7% rise in its consolidated net profit for the fourth quarter ending March 31, 2023 at Rs 6,128 crore. Its net profit in the year-ago period was Rs 5,686 crore.
The company has missed the street's estimates in the fourth quarter. Sequentially, it is a weak quarter for the company as its net profit was down 7%. Infosys had posted Rs 6,586 crore net profit in the December quarter.
Its rival TCS also missed the street's estimates in the fourth quarter. Infosys' revenue guidance for FY24 is in single digits -- in the 4%-7% range in constant currency.
The company's revenues in the fourth quarter stood at Rs 37,441 crore, a growth of 16% y-o-y. However, sequentially it was down 2.3%. For FY23, the company's revenues stood at Rs 1,46,767 crore, a growth of 20.7% compared to the previous fiscal.
Its operating margin for the quarter was at 21%, a decline of 0.6% y-o-y.
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"Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0% in FY23," said Nilanjan Roy, Chief Financial Officer.
"Free cash generation in Q4, led by robust collections, was strong. Executing on our capital allocation policy, we successfully completed the share buyback and have proposed a final dividend of Rs 17.50 for FY23," he added.
In terms of deals in FY23, the total contract value (TCV) stood at $9.8 billion and for Q4 it was $2.1 billion.
Salil Parekh, CEO and MD, Infosys said in the fourth quarter the company saw changes in the market environment.
"During the quarter we saw unplanned project ramp-downs in some of our clients and delays in decision making which resulted in lower volumes. In addition, we had a one-time revenue impact. While we saw some signs of stabilisation in March, the environment remains uncertain," he added.
In Q4, the IT company had let go of 3,611 employees. On Y-o-Y, the total headcount increased by 29,219, down 46% compared to FY22.
On hiring, Infosys said it has rich bench utilisation at 80% and they are ready to move into production projects.
"We have an agile model of hiring as demand picks up, we have the flexibility as well," CFO said.
Its voluntary attrition stood at 20.9% in Q4.