BENGALURU: Tech giant Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY) has delivered $18.2 billion revenues in FY23 with industry-leading growth of 15.4 per cent in constant currency and operating margins of 21.0 per cent. Growth was broad-based across industry verticals and geographical regions. Digital comprised 62.2 per cent of overall revenues and grew at 25.6 per cent in constant currency.
The Q4 year-on-year growth was 8.8 per cent and sequential decline was 3.2 per cent in constant currency terms. Operating margin for the quarter was 21.0 per cent. Free cash flow conversion was 95.7 per cent for Q4. Continuing the recent trend, attrition declined further in Q4.
“Our strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programmes with our clients leveraging generative AI platforms,” said Salil Parekh, CEO and MD.
“As the environment has changed, we see strong interest from our clients for efficiency, cost and consolidation opportunities, resulting in a strong large deal pipeline. We have expanded our internal programme on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients”, he added.
Guidance for FY24:
- Revenue growth of 4 per cent-7 per cent in constant currency
- Operating margin of 20 per cent-22 per cent
Key highlights:
“Our continued focus on cost optimisation and operational efficiencies have helped in achieving operating margins of 21.0 per cent in FY23”, said Nilanjan Roy, Chief Financial Officer. “Free cash generation in Q4, led by robust collections, was strong. Executing on our capital allocation policy, we successfully completed the share buyback and have proposed a final dividend of Rs 17.50 for FY23”, he added.
Capital Allocation
For FY23, the Board has recommended a final dividend of Rs 17.50 per share ($0.21 per ADS*). Together with the interim dividend of Rs 16.50 per share already paid, the total dividend per share for FY23 will amount to Rs 34.00 (approx $0.41 per ADS*) which is a 9.7 per cent increase over FY22. With this, the company has announced total dividend of approx. Rs 14,200 crore (approx. $1.7 billion*) for FY23.
The company has completed the open market share buyback on February 13, at an average price of approx Rs 1,539 per share (compared to maximum buyback price of Rs 1,850 per share). Consequently, the share capital of the company has reduced by 1.44 per cent.
Including the recently concluded buyback and final dividend for FY23, the company has returned approx 86 per cent of Free Cash Flow to shareholders under the current capital allocation policy. (*USD-INR rate of 82.00). (ANI/PRNewswire)
