Infosys FY 18 revenues grew by 7.2%

BENGALURU, IndiaApril 13, 2018 :  Infosys is a global leader in technology services and consulting Announces today Results for the Quarter and Year Ended March 31, 2018.

“I am pleased with our healthy revenue growth, profitability, and cash generation in Q4. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees. ‘Navigating Your Next’ is our aspiration of how we will partner with each one of our clients,” said Salil Parekh, CEO. “We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, Energizing our client’s Core technology landscape via AI and automation, Re-skilling our employees, and Expanding our localization in markets such as US, Europe, and Australia.”

“Revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in. Employee utilization remained healthy,” said Pravin Rao, COO. “During the quarter, we provided highest level of variable payouts in several years. We will be rolling out compensation increases for a large part of our workforce effective April 1st.”

“Our operating margins during the quarter and fiscal 2018 were resilient due to unwavering focus on productivity and operational efficiency, leading to a robust cash generation. During the year, the company implemented the capital allocation policy including the successful closure of $2 billion share buyback program in December 2017 and healthy increase in Dividend Per Share for the year,” said M.D. Ranganath, CFO. “Our margin guidance reflects our emphasis on digital-led growth and focused investments in this journey.”

  • Revenues from Digital offerings at $ 2.79 billion (25.5% of total revenues) for FY 18 which grew at 3.6% sequentially in Q4 in constant currency terms
  • Entered into a definitive agreement to acquire WongDoody Holding Company, Inc., a US-based digital creative and consumer insights agency
  • FY 18 revenues grew by 7.2% in USD terms, 5.8% in constant currency terms, with operating margins at 24.3%

1. Highlights of financial results for the quarter and year ended March 31, 2018

  • Q4 revenues grew year-on-year by 9.2% in USD terms; 6.4% in constant currency terms
  • Q4 revenues grew sequentially by 1.8% in USD terms; 0.6 % in constant currency terms
  • Q4 operating margin improved to 24.7% from 24.3% in Q3 18
  • Q4 Basic EPS at $0.26; year-on-year growth of 10.8%
  • FY 18 Basic EPS at $1.10; year-on-year growth of 17.8%
  • FY 18 Basic EPS of $1.10 includes positive impact of $0.09 from Advance Pricing Agreement (APA) with the US IRS concluded earlier in the year
  • Board recommended a final dividend of INR 20.50 per share ($0.31per ADS*) and a special dividend of INR 10 per share ($0.15 per ADS*)
  • FY 19 revenue guidance in constant currency at 6%-8%; FY 19 operating margin range at 22%-24%

Financial Highlights     

Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended March 31, 2018

  • Revenues were $2,805 million for the quarter ended March 31, 2018
    YoY growth of 9.2%; QoQ growth of 1.8%
  • Operating profit was $693 million for the quarter ended March 31, 2018
    YoY growth of 9.3%; QoQ growth of 3.6%
  • Net profit was $571 million for the quarter ended March 31, 2018
    YoY growth of 5.3%; QoQ decline of 28.2%; Q3 FY 18 net profits included positive impact of $225 million on account of conclusion of an APA with the US IRS
  • Basic EPS at $0.26 for the quarter ended March 31, 2018

Consolidated results under International Financial Reporting Standards (IFRS) for the year ended March 31, 2018

  • Revenues were $10,939 million for the year ended March 31, 2018
    YoY growth of 7.2% in reported terms; 5.8% in constant currency terms
  • Operating profit was $2,659 million for the year ended March 31, 2018
    YoY growth of 5.5%
  • Net profit was $2,486 million for the year ended March 31, 2018
    YoY growth of 16.2%
News Reporter
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