India’s second largest IT services company, Infosys, has recorded its fastest growth in more than a decade with revenues growing to ₹1,21,641 crore ($16.31 billion) in FY22, indicating a 19.7 per cent growth in constant currency compared to the previous fiscal.
Net profits stoodat ₹22,110 crore ($2.963 billion), a growth of 13.4 per cent in constant currency terms compared to the previous year. The company also projected a rather conservative revenue growth rate of 13-15 per cent and operating margins of 21-23 per cent for FY23.
Commenting on the results, CEO and MD Salil Parekh, said: “Infosys has delivered the highest annual growth in a decade with broad-based performance, driven by deeply differentiated digital and Infosys Cobalt-led cloud capabilities. We continue to gain market share as a result of sustained clients’ confidence in our ability to successfully navigate their digital journeys.”
Ukraine war impact
Stating that there would no material impact on businesses due to the ongoing Russia-Ukraine conflict, it has ‘less than 100 employees in Russia who support global clients’ and no domestic business in that market.
Parekh also refused to comment on the travails being faced by Akshata Murty — daughter of Infosys co-founder Narayana Murthy and the wife of UK Chancellor of Exchequer Rishi Sunak — who has a little over 1 per cent shareholding in the company valued at more than ₹7,000 crore. Murty, in the recent past, has been attacked by political opponents for her tax status in UK and stake in Infosys.
“With a robust demand environment ahead, we envisage making appropriate long-term investments in capability building across sales, delivery and innovation. However, we plan to neutralise some of the impact through aggressive cost optimisation programmes and value-led pricing, driven by service and brand differentiation. This, along with post-pandemic normalisation of expenses, is reflected in the margin guidance,” said CFO Nilanjan Roy.
Spike in attrition
On the sharp rise in attrition, the company said it is tackling it through a variety of measures, including hiring more freshers off-campus. The rate is on a declining trend as of Q4 FY22, said the CFO with Parekh adding: “We will scale talent globally, invest in employees and accelerate innovation and digital capabilities to capitalise on the expanding market opportunity.”
Infosys ADR on Nasdaq was trading nearly 6 per cent lower with analysts expecting the Indian markets, too, to react similarly on Thursday.