Infosys Q4 Results Strong Performance Strategic Acquisitions and a Focus on Sustainability and Social Responsibility

Infosys, one of India's leading multinational IT services companies, has announced its financial results for the fourth quarter of the fiscal year 2020-21. The company's results showcase a positive growth outlook and strong dividend payment to shareholders.

Net Profit Growth

The company's net profit for the quarter stood at INR 5,076 crore, which represents a growth of 17.5% compared to the same period last year. This growth can be attributed to strong demand for digital services and the company's focus on automation and cost optimization measures.

Revenue Growth

Infosys reported revenue of INR 26,311 crore for the quarter, which represents a growth of 13.1% year-on-year. This growth is primarily driven by strong performance in the financial services and retail sectors. The company has also reported strong growth in its digital services, with digital revenue growing at a rate of 31.3% year-on-year.

Dividend Payment

Infosys has declared a final dividend of INR 15 per share, bringing the total dividend for the fiscal year 2020-21 to INR 25 per share. This is a significant increase from the previous year's dividend of INR 21.50 per share. The company's board of directors has also approved a share buyback of up to INR 9,200 crore at a maximum price of INR 1,750 per share.

Growth Outlook

The company has provided a positive growth outlook for the fiscal year 2021-22, with a revenue growth guidance of 12%-14% in constant currency terms. The company has also announced plans to hire 26,000 employees in the upcoming fiscal year, in addition to its current workforce of over 2.6 lakh employees. The company is also expanding its digital capabilities, with plans to acquire a strategic stake in a cloud-based software provider, with a focus on providing clients with end-to-end digital transformation services.

In addition to the above information, it is important to note that Infosys has been actively pursuing strategic acquisitions to enhance its digital capabilities and expand its market reach. In February 2021, the company announced its acquisition of Simplus, a Salesforce consulting and advisory firm, which will help Infosys to strengthen its position in the Salesforce ecosystem and provide end-to-end digital transformation solutions to its clients.

Moreover, Infosys has also been investing heavily in its employees' upskilling and reskilling initiatives to enable them to work with the latest technologies and tools, which will ensure that the company remains competitive in the market. The company has also been recognized for its efforts in promoting diversity and inclusivity, as it has been ranked among the top 25 most diverse and inclusive companies globally by Refinitiv's Diversity and Inclusion Index.

Another important aspect of Infosys' growth strategy is its focus on sustainability and social responsibility. The company has set ambitious targets to reduce its carbon footprint and achieve carbon neutrality by 2040. Infosys has also been recognized as a global leader in sustainability, as it has been listed on the Dow Jones Sustainability Indices for 12 consecutive years and has been ranked as the most sustainable IT services company by Corporate Knights in 2021.

Overall, Infosys' Q4 results demonstrate the company's ability to adapt and thrive in challenging times, while also staying committed to its stakeholders and broader societal goals. With its focus on digital transformation, employee development, and sustainability, Infosys is well-positioned to drive innovation and growth in the IT services industry, both in India and globally.

CEO Statement

Commenting on the results, Salil Parekh, CEO and MD of Infosys, said, "Our intense focus on client relevance and deepening of our digital capabilities helped us deliver resilient performance during the year, despite the unprecedented situation arising out of the COVID-19 pandemic. We are also rolling out compensation increases for more than 80% of our workforce starting April, and we will be rolling out promotions across all levels effective 1st July."

Conclusion

Infosys' Q4 results showcase the company's resilience and strength in the face of challenges posed by the COVID-19 pandemic. The company's strong growth in net profit and revenue, as well as its impressive dividend payment and share buyback, are a testament to its commitment to delivering value to shareholders. The company's growth outlook for the upcoming fiscal year, with a focus on expanding its digital capabilities and hiring more employees, positions it well for continued success in the market. With its focus on client relevance, deepening of its digital capabilities, and commitment to employee compensation, Infosys is poised to emerge even stronger in the coming years.