The fourth quarter results for FY14 from Infosys are in line with market projections as India’s second largest IT services exporter ended the fiscal with a US dollar revenue growth of 11.5% and, as expected, it has provided a guidance of 7-9% revenue growth for FY15.
Infosys had already stated that it would only be able to meet the lower end of the FY14 guidance in the range of 11.5-12% and there was also lower expectation built on its FY15 revenue projection. The guidance given by the IT major is much lower than the projection for the Indian IT industry of 13-15% by Nasscom.
At the end of fourth quarter of FY14, Infosys reported revenue of $2.09 billion which was marginal decline of 0.4% when compared to the fourth quarter. The net profit touched $487 million, recording a sequential growth of 5.2%.
In rupee terms, the fourth quarter revenue of Infosys stood at Rs 12,875 crore which was sequential decline of 1.2% while the net profit rose 4.1% quarter-on-quarter basis to touch Rs 2,992 crore.
The only consolation for Infosys is that it has doubled its revenue in US dollar terms from FY 13 to FY14.
“I am pleased that we have been able to double our growth rate for the full year compared to last year, though performance in the last quarter of FY 14 has been disappointing.” said S D Shibulal, CEO and Managing Director. “We have guided for a revenue growth of 7%-9% next year and remain firmly focused on building the growth momentum by making all the necessary investments in our business.”
The operating margins of Infosys showed a marginal improvement in the fourth quarter to touch 25.5% which is a 0.5% improvement over the previous quarter. The cash reserves crossed $5 billion during the quarter and the company has increased the dividend payout ratio to up to 40% of post tax profits effective FY14.
However, the disappointing factor for Infosys has been its attrition rate which once again rose to 18.7% at the fourth quarter of FY14 from 18.1% in the sequential quarter.
For FY14, Infosys reported revenue of Rs 50,133 crore showing a yearly growth of 24.2% while the net profit touched Rs 10,648 with a rise of 13%. In US dollar terms, the revenue touched $8.24 billion to rise by 11.5% while the net profit was $1.75 billion growing by just 1.5%.