Infosys

The company’s performance for Q4FY17 was disappointing. It reported a 0.7% (QoQ) rise in consolidated revenues at $2569 million. Its net profit was down 0.8% at $543 million. In rupee terms, revenue was down 0.9% at Rs.17,120 crore and net profit slipped 3% at Rs.3603 crore.

The bigger disappointment was the guidance – for FY18, the company guided a revenue growth of 6.5 to 8.5% in constant currency and in dollar terms, a growth of 6.1 to 8.1%. Last fiscal, in FY17, the company revised its growth guidance thrice and yet missed its guidance of 8.4% to 8.8%, clocking in a revenue growth of 8.3%. Thus, given the storm brewing over the H1B visa in USA, we cannot help but wonder how much of a miss or a hit its guidance will be this fiscal.

In terms of geographical break-up, North Amercia continues to have the lion’s share – its share in revenue rose marginally from 62% to 62.3% (QoQ), Europe was at 22.1%, India is at 3.2% and Rest of World was as 12.4%.

For the fiscal ended March 31, 2017 the total revenue stood at Rs 68,484 crore registering a growth of 9.7%. The net profit for the year stood Rs 14,353 crore reporting a growth of 6.4%.

As on March 2017, the company’s total headcount stood at 2,00,364 people and it made a gross addition of 601 during the quarter.  

As per the new capital allocation policy effective from FY18, Infosys expects to payout up to 70% of the free cash flow of the corresponding financial year by way of dividend and/or share buyback as may be decided by the board. The company’s current policy is to pay dividends of up to 50% of post-tax profits of the financial Year. The board has also identified an amount of upto Rs. 13,000 crore to be paid out to shareholders during Financial Year 2018, including by way of dividend and/or share buyback to be decided by the board.

The company’s cash and cash equivalents as at 31st March 2017 stood at Rs.38,773 crore.