Infosys Q4 Results: Company Says Free Cash Flows Increased by 44.4% this Year

Infosys Q4 results have been announced and the company has reportedly delivered strong FY21 performance with 5.0% CC growth, and growth accelerating to 9.6% in Q4. Large deal TCV for FY21 peaked to $14.1 billion with 66% being net new. Operating margin for the year expanded by 3.2% and free cash flows increased by 44.4%, said the company. The Board has recommended capital return of Rs 15,600 crore including final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore.

“I am very pleased with our performance this year and incredibly proud of our employees for the passion and commitment they displayed despite a very tough environment. We have crossed a milestone of Rs 100,000 crore in revenue in FY21. Our intense focus on client relevance, growing our digital portfolio with differentiated capabilities like Infosys CobaltTM, and empowering employees have helped us emerge as a preferred ‘partner-of-choice’ for our global clients. Our record large deal wins stand testimony to the effectiveness of this approach”, said Salil Parekh, CEO and MD. “A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22”, he added.

Key highlights of the Infosys Q4 Results and Year Ended 31 March 2021

“Despite the disruptions, we continue to execute seamlessly with broad-based momentum across verticals. This has led to healthy volume growth and record utilization in a seasonally soft quarter”, said Pravin Rao, COO. While our employees continue to work from home through this health crisis, we remain focused on their wellness, including facilitating vaccination rollout for eligible employees. Attrition has picked up, largely reflecting a strong demand environment, but we remain confident of our employee engagement initiatives, vast talent pool and training capabilities to ensure seamless execution”, he added.

“FY21 was a landmark year with superior shareholder returns backed by robust operating metrics and strong growth across revenue, margins and free cash flows”, said Nilanjan Roy, CFO. “Executing on our capital allocation policy, the company proposes to increase the total dividend per share by 54% over previous year and Buyback of Equity shares of up to Rs 9,200 crore”, he added.

“Infosys has managed to navigate through the crisis and has been comparatively more competent among some Indian peers to convert the threat into an opportunity to drive digital growth. Though overall yearly revenue remains under pressure, this is not unexpected due to the COVID situation unfolding last year. The value Proposition driven by Infosys strategy leverages securing the enterprise, accelerating speed to market, and expanding innovation. The approach appears to have delivered growth has managed to win some good deals during the previous year along with a healthy pipeline. As organizations accelerate their digital journey, the revenue may continue to remain under pressure for some time, but digital growth will help regain the situation fast over a period. As the newer deals require more non-linear modes of engagement with providers, Infosys may need to accelerate its capability towards more agile contracts," said DD Mishra, senior research director, Gartner