Infosys which closed FY22 with a strong 19.7% year-on-year growth in constant currency terms, its fastest in the past 11 years is riding on the growing demand for the digital. Digital now contributes nearly 60% to its total revenues. "We see the demand environment to be robust today. In our pipeline and the work that we are doing in digital and cloud, we see a clear demand with our client base," CEO & MD Salil Parekh said in a post earnings media briefing on Wednesday.
The IT major claims to record "good demand" across industries, ranging from hi-tech businesses to manufacturing and financial services. "Hi tech businesses are looking to connect with their customers in a different way, in a faster way and we are part of that, trying to rework their supply chains given what's going on globally," Parekh said while explaining the nature of the demand. Besides, clients in the manufacturing segment are increasingly looking to leverage IOT infrastructure and innovation in the cloud. Financial services which Infosys counts as its largest industry segment is also leaning on tech to drive business transformation. "So, the demand is broad based across many of our industry segments today and we see that looking good in terms of our pipeline as we look out to this financial year," Parekh said.
Clients are much more focused on areas like cloud, IOT, automation and are willing to spend, the CEO said.
As it builds on its next phase of growth, the IT major wants to further enhance its "leadership along the digital innovation curve," Parekh said. "We plan to expand the capabilities by scaling our cloud capabilities even further," Parekh added.
Infosys won 25 large deals during the January-March quarter, "spread pretty well across most of its business segments." TCV of large deal wins stood at $2.3 billion for the quarter while for FY22, TCV totalled $9.5 billion.
"Our sustained momentum in FY22, large deal wins, robust deal pipeline and client confidence in our capabilities give us comfort to provide a guidance of 13%-15% for growth in FY23 in constant currency terms," Parekh said.
Infosys recorded a 12% year-on-year rise in its consolidated net profit at ₹5,686 crore in Q4FY22. Net profit stood at ₹5,076 crore during the year-ago quarter. Revenues grew by 22.7% to touch ₹32,276 crore in Q4 FY22, compared to ₹26,311 crore in Q4FY21. For FY22, net profits saw a 14.3% year-on-year increase to ₹22,110 crore while revenues grew by 21.1% year-on-year to touch ₹121,641 crore. For larger rival TCS, net profits grew by 7.35% on a year-on-year basis at ₹9,926 crore in Q4FY22. The firm's revenues touched ₹50,591 crore during the quarter which translates into a 15.75% increase over the year-ago period.
"We are clearly gaining market share in our view. At 19.7% from what we understand, we are one of the fastest growing. All of this growth was based on an organic basis and we see the tremendous traction we have with clients that gives us an increase in the market share," Parekh said.
The geo-political tensions have had no impact on the firm's business so far. "We have started to transition all of our work from our centres in Russia to our centres outside Russia. We have less than 100 employees in Russia. We work with no Russian clients and the work we do is with a small number of global clients in Russia," Parekh said while emphasising that Infosys also has no plan to work with any Russian client going ahead.
Attrition for Infosys touched a steep 27.7% in Q4FY22 compared to 25.5% in Q3 and 10.9% in the year-ago quarter. "In the quarter, attrition was about 5 points lower than in the previous quarter and everything we see gives us a view that attrition is coming more and more into the range that we would be comfortable with," Parekh said.
