Infosys kicked off the Q4 earnings season on Thursday, announcing a modest performance for the March 2017 quarter and a dollar revenue guidance of 6.5-8.5 percent for the financial year 2017-18.
The year ahead is bound to be a challenging one for the entire IT software services industry, given the protectionist stance by the Donald Trump administration as is evident from the tightening of the H1-B visa norms. Indian IT companies generate about 60 percent of their revenues from North America, comprising the US and Canada.
For Infosys, Q4 net profit remained almost flat at Rs 3,603 crore while revenues went up 3.4 percent to Rs 17,120 crore. In dollar terms, Q4 revenues came in at $2,569 million.
For the full-year 2016-17, revenues have gone up 8.3 percent in constant currency terms to $10,208 million and net profit, to $2,140 million.
In rupee terms, FY2017 revenues grew 9.7 percent YoY to Rs 68,484 crore and net profit is up 6.4 percent to Rs 14,353 crore.
The final dividend is Rs 14.75 per equity share.
Infosys shares were down 2.32 percent to Rs 946 on the Bombay Stock Exchange (BSE).
Here is what the management said after the declaration of results:
Vishal Sikka, CEO
Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance.
Zero Distance marked its 2-year anniversary as a grassroots cultural movement for innovation with strong client resonance, and our employee engagement continued to drive down attrition, especially with top performers.
Looking ahead, it is imperative that we increase our resilience to the dynamics of our environment and we remain resolute in executing our strategy, our path to transform Infosys, and to drive long term value for all stakeholders.
MD Ranganath, CFO
In FY 17, operating margins were steady as we continued our sharp focus on operational efficiencies. Cash provided by operating activities during the year was robust and exceeded $2 billion, a new high.
UB Pravin Rao, COO
Our capital allocation policy is aimed at balancing the strategic and operational needs of the company as well as enhancing shareholder returns.
Attrition declined during the quarter reflecting our focus on better employee engagement. Utilisation during Q4 reached 82% which is the highest in Q4 over the past several years.
