Infosys won orders worth $2.1 billion in Q4, FY23 order wins stood at $9.8 billion

The IT behemoth said it received orders worth $2.1 billion in Q4FY23, bringing its total for the year to $9.8 billion.

“As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients,” said Salil Parekh, CEO and MD.

“Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programs with our clients leveraging generative AI platforms” said Salil Parekh, CEO and MD.

“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 ₹17.50 for FY23″, he added.

The march quarter’s consolidated net profit for Infosys grew 7.8% year-on-year (YoY) to ₹6,128 crore from ₹5,686 crore during Q4FY22. The firm reported a 16 per cent YoY jump in consolidated revenue from operations at ₹37,441 crore compared to ₹32,276 crore reported in the year-ago quarter. Revenue growth guidance of 4%-7% and operating margin guidance of 20%-22% for FY24 marked by the company.

The company’s operating profit was ₹7,877 crore, up 13% from the ₹6,956 recorded in the March 2022 quarter. Compared to 24.3 percent in Q3FY23 and 27.7 percent in Q4FY22, the attrition rate for Q4FY23 dropped to 20.9%.

Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas said “Infosys delivered a surprisingly weak set of numbers for Q4 and missed our and street estimates on all multiple fronts on the back of unplanned project rammed down and cancellation across the sectors. Revenue decline of -3.2% qoq on constant currency basis, is worse than sequential decline seen in the peak of covid-19 crises. Also, FY24 guidance seems to be modest and below our expectations both on revenues and margins. Further TCV wins at $ 2.1 bn or the quarter was weak down 36% qoq and 9% yoy. Management commentary does not inspire confidence on business outlook amid uncertain demand environment. We expect stock to witness weakness and underperform in near term.”

“For FY23, the Board has recommended a final dividend of ₹17.50 per share. Together with the interim dividend of ₹16.50 per share already paid, the total dividend per share for FY23 will amount to ₹34.00 which is a 9.7% increase over FY22. With this, the company has announced total dividend of approx. ₹14,200 crore for FY23,” said Infosys in a stock exchange filing. 

Infosys closed today on the NSE at a downside gap of 3.14% and stood at ₹1,383.40 apiece level.