Infosys Q4 result beats forecast

The Quarter and Year ended March 31, 2014 FY 14 revenue growth doubled with its Q4 operating margins expanding 50 bps sequentially to 25.5%; Dividend pay-out ratio increased to 40% of post-tax profits;

FY 15 revenues expected to grow 7%-9% in USD terms; 5.6%-7.6% in INR terms, the company said.

The company, however, is battling a high attrition rate. Infosys CEO and Managing Director S D Shibulal said it is more than they are comfortable with with staff leaving the company in large number.

Its attrition rate rose to 18.7 per cent in Q4  as against 18.1 per cent in Q3.

“I am pleased that we have been able to double our growth rate for the full year compared to last year, though performance in the last quarter of FY 14 has been disappointing.” said S. D. Shibulal,

“We have guided for a revenue growth of 7%-9% next year and remain firmly focused on building the growth momentum by making all the necessary investments in our business.”

Chief Financial Officer Rajiv Bansal said: “Our cash and cash equivalents crossed `30,000 crore during the quarter. We have increased the dividend
payout ratio to up to 40% of post-tax profits effective FY 14 to enhance returns for our shareholders.” 

Financial Highlights

Consolidated results under International Financial Reporting Standards (IFRS) for the year and quarter ended March 31, 2014

Year ended March 31, 2014

ï‚· Revenues were Rs 50,133 crore for the year ended March 31, 2014 YoY growth was 24.2%

ï‚· Net profit was Rs 10,648 crore for the year ended March 31, 2014 YoY growth was 13.0%

ï‚· Earnings per share (EPS) was Rs 186.35 for the year ended March 31, 2014 YoY growth was 13.0%

Quarter ended March 31, 2014

ï‚· Revenues were Rs 12,875 crore for the quarter ended March 31, 2014 QoQ decline was 1.2% YoY growth was 23.2%

ï‚· Net profit was Rs 2,992 crore for the quarter ended March 31, 2014 QoQ growth was 4.1% YoY growth was 25.0%

ï‚· Earnings per share (EPS) was `52.36 for the quarter ended March 31, 2014 QoQ growth was 4.1% YoY growth was 25.0%

ï‚· Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were Rs 30,251 crore as on March 31, 2014 versus Rs 27,440 crore as on December 31, 2013 and Rs 23,958 crore as on March 31, 2013

ï‚· The Board of Directors recommended a final dividend of `43 per share for fiscal 2014. The Register and Share Transfer Books of the Company will be closed from May 31, 2014 to June 14, 2014 (both days inclusive)

 The Company‟s current policy is to pay dividends up to 30% of post-tax profits. The Board has decided to increase the dividend pay-out ratio to up to 40% of post-tax profits effective fiscal 2014

Business Highlights of Infosys

ï‚· Large outsourcing agreements signed with enterprises across Energy, Communications, Financial Services, Government and Healthcare sectors. Selected by Volvo Cars as a strategic supplier to provide application development services for its global operations. Won an outsourcing deal from a large European bank to manage its overall Applications Portfolio.

ï‚· Extended  contract with District of Columbia to implement the next phase of its health insurance marketplace (DC Health Link). This includes modernizing its legacy eligibility system and additional health and social programs.

ï‚· Engaged by a top healthcare solution provider to enhance its flagship revenue cycle management product and help its customers comply with regulatory requirements.

ï‚· Chosen by a French global manufacturing conglomerate to build an Agricultural Research Tool for its coffee platform and help the company monitor and report data around production and usage metrics.

ï‚· Signed a 3-year contract to extend digital marketing support worldwide under a managed services model for a global grocery manufacturing and processing conglomerate.

ï‚· Sustained business momentum across advanced technology solutions with 20 new deals signed for Cloud and Big Data offerings; 15 new deals signed for mobility offerings and 12 new deals signed for Engineering Services.

ï‚· Continued expansion of Infosys Finacle™ globally with 7 new wins and 11 go-lives at banks across Europe, South America, Africa, Middle East and Asia Pacific.

 Set up a 100 seat delivery center in Araraquara, Brazil to provide SAP Application Management services to Citrosuco, the world‟s leading orange juice producer.

ï‚· Commenced work on 4 new campuses in the Indian cities of Indore, Mohali, Noida and Nagpur.

ï‚· Applied for 18 unique patent applications in India and the USA during the fourth quarter, adding to a total of 541 patent applications undergoing various stages of patent prosecution in India, the U.S. and other jurisdictions. Granted 153 patents by the United States Patent and Trademark Office, 3 patents by the Luxembourg Patent Office and 1 patent by the Australian Patent Office.