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Infosys, India's second-largest IT firm, has reported a consolidated net profit of Rs 6,128 crore for the quarter ended March 2023, representing a YoY increase of 7.8%. However, this figure was 6.5% lower than the CNBC TV-18 poll estimate of Rs 6,553 crore.
Consolidated revenue for the quarter came in at Rs 37,441 crore, up 16% YoY. Operating profit for Infosys was reported at Rs 7,877 crore, representing a 13% YoY increase. However, operating margin contracted 0.5% YoY as well as sequentially to 21%.
Infosys CEO and MD, Salil Parekh, credited the company's strong performance to its focus on digital, cloud, and automation capabilities. The North America region was the key driver of revenue from clients during the quarter, accounting for 61% of it. The company's attrition rate during the quarter dropped to 20.9%, and the total value of large deals closed in Q4 FY23 stood at $2.1 billion, with a total of $9.8 billion for the entire fiscal year. The company's board has recommended a final dividend of Rs 17.50 per equity share for the fiscal year, bringing the total dividend for FY23 to Rs 34 per share, 9.7% higher than the total dividend announced in FY22. The company also reported a strong free cash generation in Q4, led by robust collections.
IT sector bellwether TCS also reported lower-than-expected numbers for the last quarter of FY23, with a 14.8% YoY increase in consolidated net profit at Rs 11,392 crore and consolidated revenue from operations of Rs 59,162 crore, up 16.9% YoY. TCS saw its EBIT margin contracting 0.5% YoY to 24.5% vs 0.1% expansion expected while EBIT increased 14.7% to Rs 14,488 crore for the quarter.