Infosys Q4 Earnings Miss Estimates; Recommends Final Dividend Of Rs. 16/share

The country's IT major came out with its Q4 numbers with lower than expected earnings growth. Nevertheless, guidance for revenue growth for the ongoing fiscal year seems to exceed analysts' expectations.

The company logged a decline in profitability sequentially by 2.1% to Rs. 5686 crore. This is majorly owing to lower income as well as decline in operating margin. In dollar terms also there has been clocked a decline in profitability sequentially by 2.9% to $752 million.

Infosys Q4 Earnings Miss Estimates; Recommends Final Dividend Of Rs. 16/share

On a full year basis, profit jumped 14.3% to Rs. 22110 crore in comparison to the earlier year.

Consolidated revenue during the March 2022 quarter increased by 1.3 percent to Rs 32,276 crore on a sequential basis and the same in dollar terms grew by 0.7 percent QoQ to $4,280 million, missing expectations.

Attrition at the company has been climbing only higher.

On the dividend front, the company for the fiscal year 2022 recommended a final dividend of Rs. 16 per share. "Together with the interim dividend of Rs 15 per share already paid, the total dividend per share for FY22 will amount to Rs 31, which is a 14.8 percent increase over FY21."

With this, the company has announced a total dividend of approximately Rs 13,000 crore for the full year."In a year marked by intense supply-side challenges, Infosys delivered strong financial performance - EPS growth of 15.2 percent, free cash flows surpassing $3 billion and return on equity of 29.1 percent, driven by client-centricity and rich capabilities," said Nilanjan Roy, Chief Financial Officer at Infosys.

He further said with a robust demand environment ahead, Infosys envisaged making appropriate long-term investments in capability building across sales, delivery and innovation. However, "we plan to neutralise some of the impact through aggressive cost optimisation programmes and value-led pricing driven by service and brand differentiation. This, along with post-pandemic normalisation of expenses, is reflected in the margin guidance."

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