DQ Estimates Revenue (Rs Crore)
For the year 2016 to 2017 : 68,484
For the year 2017 to 2018: 70,522
Increase of 3%
One can say that FY 18 was a year of transition for Infosys as the new CEO Salil Parekh took on the reigns of this IT bellwether. One can say during FY 18, Infosys went on a self-appraisal mode, after all the backlash and ire it received after the unceremonious exit of Vishal Sikka and corporate governance issues that plagued the company during that time.
FY 18 was more about strategy and inking a bold new vision for the company and the road ahead. No doubt Parekh joined as CEO at a time, when things were in a state of flux. So clearly he inked a 3-year roadmap to first stabilize, then build muscle and momentum and then revenue amplification. So clearly FY 18 was more about stability and restoring Infosys to some of the old values and ethics it stood for.
Commenting on the year-end financials, “Parekh said, “ I am pleased with our healthy revenue growth, profitability, and cash generation in Q4. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees. ‘Navigating Your Next’ is our aspiration of how we will partner with each one of our clients. We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, Energizing our client’s Core technology landscape via AI and automation, Re-skilling our employees, and Expanding our localization in markets such as US, Europe, and Australia.”
If one looks at the numbers, topline revenues stood at Rs 70,522 crore for the year ended March 31, 2018, YoY growth of 3.0% in reported terms; 5.8% in constant currency terms. The operating profit was Rs 17,148 crore for the year ended March 31, 2018, YoY growth of 1.5% and the net profit was
Rs 16,029 crore for the year ended March 31, 2018, YoY growth of 11.7%
The company says that revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in. Employee utilization remained healthy. During the quarter, Infosys provided the highest level of variable payouts in several years. It will be rolling out compensation increases for a large part of our workforce effective
If one looks at the operating margins during the quarter and fiscal 2018, they were resilient due to its focus on productivity and operational efficiency, leading to a robust cash generation. During the year, the company implemented the capital allocation policy including the successful closure of $2 billion share buyback program in December 2017 and healthy increase in Dividend Per Share for the year.
In terms of the outlook for FY 19, revenues are expected to grow by 8.2%-10.2% in INR terms, which are based on based on the exchange rates as of March 31, 2018.