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Infosys profits increase by 17.5 percent, will repurchase

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Infosys, the country’s second-largest IT services provider, had mixed fourth quarter results for FY 2021. The company’s profit during this period increased by 17.5 percent to Rs 5,076 crore as compared to the same quarter last year, but decreased by 2.3 percent on a quarterly basis. The company’s revenue grew 9.6 per cent year-on-year to Rs 26,311 crore in the fourth quarter, but grew by just 2 per cent on a quarterly basis. The company’s operating margin stood at 24.5 per cent in the quarter ended 31 March 2021, an increase of 320 basis points throughout the year.

The board of directors of Infosys has recommended a return of Rs 15,000 crore to shareholders, including a final dividend of Rs 6,400 crore. The company will repurchase Rs 9,200 crore. But the repurchase from the open market will not be more than Rs 1,750 per share. Infosys Chief Finance Officer Nilanjan Roy said, “Share repurchases are in line with the company’s policy. As per the capital allocation policy, the company has increased the total dividend per share by 54 per cent from the previous year and has approved a repurchase of Rs 9,2000 crore.

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In FY 2019, Infosys succeeded in meeting revenue and margin estimates. For FY 222, the company has projected 12 to 14 per cent growth in earnings on fixed currency, while operating margins are expected to be in the range of 22 to 24 per cent.

Company management said that they are confident of further demand as customers are spending more on cloud and digital. However, salary increases will affect the company’s margins.

Infosys CEO and Managing Director Salil Parekh said it was an extraordinary year. The share of the company’s digital business in the company’s total revenue has now increased to 51.5 per cent, which has increased by 34 per cent on an annual basis. The $ 14.1 billion deal was important this year.

Compared to rival Tata Consultancy Services (TCS), Infosys has performed better year-on-year but is lagging behind TCS in terms of quarterly growth.

The ICISI Direct Research report said that the fourth quarter of FY 2021 was mixed for Infosys. The company has projected earnings to grow in double digits and the company has maintained margins despite the increment. Infosys’ earnings have been increasing for the last few quarters and the margin is narrowing in terms of margins.

The stock market fell by more than 1700 points, but the share of this IT company reached an all-time high

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Mirza Shehnaz
Shehnaz Ali Siddiqui is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing around Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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