Infosys March quarter net profit lower than previous quarter

For FY17, Infosys reported revenue of Rs 68,484 crore in INR terms, up 9.7%; up 8.3% in constant currency terms.

Operating margin was 24.7% as compared to 25.0% in FY 16.

FY 17 basic EPS was Rs 62.80, up 6.4% YoY.

For Q4, the company reported 0.9% QoQ decline in revenue in INR terms; flat in constant currency terms.

Q4 operating margin was 24.6% and basic EPS at Rs 15.77.

The company's liquid assets including cash & cash equivalents and investments were 38,773 crore as on March 31, 2017.

The company kept its FY 18 revenue guidance at 6.5%-8.5% in constant currency and FY 18 operating margin guidance at 23%-25%.

The company reported operating profit of Rs 16,901 crore for the year ended March 31, 2017; up 8.2% YoY  while net profit was Rs 14,353 crore for the year ended March 31, 2017, up 6.4% YoY.

For the quarter ended March 31, 2017, operating profit was Rs 4,212 crore, down 2.8% QoQ  and 0.2% YoY.

In the same period, net profit was Rs 3,603 crore, down 2.8% QoQ but up 0.2% YoY.

“Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance. At the same time, we continued to see many positive signs of our strategy execution; our software led offerings continued to show strong momentum and client success, with continued adoption of Mana, our AI platform; Zero Distance marked its 2-year anniversary as a grassroots cultural movement for innovation with strong client resonance, and our employee engagement continued to drive down attrition, especially with top performers,” said Dr. Vishal Sikka, CEO.

“Looking ahead, it is imperative that we increase our resilience to the dynamics of our environment and we remain resolute in executing our strategy, our path to transform Infosys, and to drive long term value for all stakeholders,” he said.

“Attrition declined during the quarter reflecting our focus on better employee engagement. Utilization during Q4 reached 82% which is the highest in Q4 over the past several years," said U. B. Pravin Rao, COO.

“In FY17, operating margins were steady as we continued our sharp focus on operational efficiencies. Cash provided by operating activities during the year was robust and exceeded $2 billion, a new high," said M. D. Ranganath, CFO. “Our capital allocation policy is aimed at balancing the strategic and operational needs of the company as well as enhancing shareholder returns."