Infosys delivers highest annual growth in a decade - $16.3 billion
Next-generation digital services and consulting company Infosys has delivered $16.3 billion in revenue.
The company had the highest annual growth in the last decade, with 19.7% in constant currency with an operating margin of 23.0%. Growth was broad-based, supported by continued momentum in large deal wins with TCV of $9.5 billion. Earnings per share (EPS) grew by 15.2%. Free cash flow (FCF) crossed $3 billion for the year. Its Q4 sequential growth was 1.2% in constant currency, with an operating margin of 21.5%. And total contract value (TCV) of significant deal wins was $2.3 billion in Q4.
"Infosys delivered its highest annual growth in a decade with broad-based performance driven by deeply differentiated digital and Infosys Cobalt led cloud capabilities, powered by 'One Infosys' approach," says Infosys CEO and managing director, Salil Parekh.
"We continue to gain market share due to sustained clients' confidence in our ability to navigate their digital journeys successfully. With the acceleration of digital disruptions across industries, we see immense potential to engage and partner with clients as they transform, adapt and thrive.
"We will scale talent globally, invest in employees and accelerate innovation and digital capabilities to capitalise on the expanding market opportunities," he adds.
Key financial highlights for the quarter ended March 31, 2022:
- Revenues in CC terms grew by 20.6% YoY and 1.2% QoQ
- Reported revenues at $4,280 million, growth of 18.5% YoY
- Digital revenues at 59.2% of total revenues, YoY CC growth of 38.8%
- Operating margin at 21.5%, decline of 3.0% YoY
- Basic EPS at $0.18, growth of 9.2% YoY
- FCF at $761 million, decline of 4.8% YoY, with FCF conversion at 101.0% of net profit
And for the year ended March 31, 2022:
- Revenues in CC terms grew by 19.7% YoY
- Reported revenues at $16,311 million, growth of 20.3% YoY
- Digital revenues at 57.0% of total revenues, YoY CC growth of 41.2%
- Operating margin at 23.0%, decline of 1.5% YoY
- Basic EPS at $0.70, growth of 14.3% YoY
- FCF at $3,055 million, growth of 2.8% YoY. With FCF conversion at 102.9% of net profit
"In a year marked by intense supply-side challenges, Infosys delivered strong financial performance, with EPS growth of 15.2%, free cash flows surpassing $3 billion and a return on equity of 29.1%. The Board has proposed a final dividend of USD$0.209. This takes the total dividend for FY22 to USD$0.406 per share, an increase of 14.8% over the prior year", says Infosys, chief financial officer, Nilanjan Roy.
"With a robust demand environment ahead, we envisage making appropriate long-term investments in capability building across sales, delivery and innovation. However, we plan to neutralise some impact through aggressive cost optimisation programs and value-led pricing driven by service and brand differentiation.
"This, along with a post-pandemic normalisation of expenses, is reflected in the margin guidance", he adds.