Infosys fourth quarter net up 2.4% at Rs3,690 crore

IT major Infosys on Friday reported a consolidated net profit of Rs3,690 crore for the quarter ended 31 March 2018, which represented a 2.4 per cent growth year-on-year and 28.1 per cent fall compared to the previous quarter.

Salil Pakekh

Revenue for the quarter increased by 5.6 per cent year-on-year to Rs18,083 crore while operating profit for the quarter stood at Rs4,472 crore, showing a growth of 6.2 per cent.
Infosys said its Q3 FY18 net profit included positive impact of Rs1,432 crore on account of conclusion of an APA with the US IRS.
Earnings per share for the quarter ended 31 March 2018 stood at Rs16.98.
For the full financial year ended 31 March 2018, Infosys reported an 11.7 per cent increase in its net profit at Rs16,029 crore.
Revenue for the financial year stood at Rs70,522 crore, showing an year-on-year growth of 3 per cent (5.8 per cent in constant currency terms). Operating profit for the year was 1.5 per cent higher at Rs17,148 crore.
“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 $2.79 billion in revenue; energising our client’s core technology landscape via AI and automation; re-skilling our employees, and expanding our localisation in markets such as US, Europe, and Australia,” he added.
“Revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in. Employee utilisation 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.”
Infosys has also created a special bonus pool of $10 million for its 2 lakh-odd employees in addition to their quarterly variable pay.
The board has decided to retain the current policy of returning up to 70 per cent of the free cash flow of the corresponding financial year in such manner, as may be decided by the board from time to time, subject to applicable laws and requisite approvals, if any. Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend payout includes dividend distribution tax (DDT).
In addition to the above, out of the cash on the balance sheet, the board has identified an amount of up to Rs13,000 crore ($2 billion) to be paid to shareholders as a special dividend of Rs10 per share ($0.15 per ADR) resulting in a payout of approximately Rs2,600 crore (approximately $400 million) in June 2018. The remaining Rs10,400 crore (approximately $1,600 million) will be to be paid out to shareholders for the financial year 2019, in such a manner, to be decided by the board, subject to applicable laws and requisite approvals, if any.
For the financial Year 2018, the board has recommended a final dividend of Rs20.50 per share ($0.31 per ADR) amounting to Rs5,349 crore ($821 million) including DDT. After including the interim dividend of Rs13 per share, the total dividend for financial year 2018 will amount to Rs33.50 per share resulting in a payout of Rs8,771 crore ($1,349 million) including DDT, which will amount to approximately 70 per cent of free cash flow for the financial year 2018.
The total dividend of Rs33.50 per share is approximately 30 per cent higher than total dividend of Rs25.75 per share for financial year 2017.
The aggregate dividend, including the special dividend of Rs10 per share ($0.15 per ADR) works out to Rs43.50 per share ($0.67 per ADR) resulting in an aggregate dividend payout of approximately Rs11,371 crore (approximately $1,749 million), including DDT.
Infosys expects revenue for FY19 to grow 6-8 per cent in constant currency terms and 7-9 per cent in dollar terms.