Infosys Q4FY20 Profit At Rs. 4321 Crore; Suspends Guidance Amid Pandemic

anAfter TCS Q4FY20 lagged in revenue, the IT company Infosys has announced its earnings for the quarter ended March. In the March ended quarter, the IT major posted net profit at Rs. 4321 crore. Revenue at the firm during the quarter under review came in at Rs. 23,267 crore.

Infosys Q4FY20 Profit At Rs. 4321 Crore

It is worth mentioning that in March, the IT services exporter that it has obtained SEC clearance in whistleblower case against the company and no more action is foreseen.

The company has not given any guidance amid the pandemic and said"Considering the business uncertainty emanating from Covid-19, the company is unable to provide guidance on revenues and margins for FY 21 at this stage," adding that it will provide guidance after visibility improves.

Dollar revenue at the firm also took a hit by 1.4% on a quarter on quarter basis to $3,197 million during January-March period of FY20.

Operating margins also came in lower as operating profit was dragged lower by 2.7% to Rs. 4927 crore and margin declined by 70 bps to 21.2% sequentially.

In FY20, the company raised its constant currency revenue guidance progressively each quarter. It had a forecast of 10-10.5 percent growth for financial year 2019-20.Salil Parekh, CEO and MD, Infosys said, "We had an exceptional year in 2020 with growth of 9.8 per cent and operating margin of 21.3 per cent."

"We completed a satisfying year on multiple counts - growth in all verticals and geographies, significant increase in large deal wins, good client mining and operational discipline", said Pravin Rao, COO, Infosys.

"The impact caused by COVID-19 since last few weeks of March has led to significant displacement in the operating model while severely testing business continuity plans of companies," he added.

Uri Levine has been appointed as the independent director at the firm and his appointment comes into effect from April 20 and is for a period of 3 years and subject to shareholders nod.

During the quarter, the company had signed deals valued at $1.65 billion and has Rs. 27300 cash as of March 31.

Attrition rate for January-March stood at 20.7 per cent against 20.4 per cent last fiscal.

"We will honour all job offers made by the company," Infosys said.

Stock of Infosys ended 4% higher on the NSE.

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