Coronavirus (COVID-19): In line with its other peers, Infosys on Monday refrained from giving a guidance on revenues and margins for the new fiscal, as it anticipates near-term challenges in its business as a wide set of industries have been disrupted by the coronavirus pandemic.
Infosys CEO Salil Parekh said, “Given the uncertain environment with the global pandemic, we do not feel it will be appropriate to provide an annual guidance at this stage. As a result we are suspending the practice of giving revenue growth and margin guidance for FY21.” The company has successfully facilitated 93 per cent of its workforce to work from home.
Despite its strong balance sheet, the company is still taking several measures to cut costs, apart from “no regret” decisions like freezing wage hikes, promotions and new hiring for the moment to tide over the current crisis.
The impact of the Covid-19 crisis is visible in the company’s fourth quarter numbers. In dollar terms, the company’s revenues fell 1.4 per cent sequentially to $3.19 billion, while in constant currency revenues fell by 0.8 per cent sequentially. For the quarter, Infosys posted a revenue of Rs 23,267 crore and a net profit of Rs 4,335 crore, with an operating margin of 21.2 per cent — a 70-bp decrease sequentially. Digital revenue now accounts for 42 per cent of overall revenues. Growth across business segments and geographies remained flat in the quarter ended March 31, 2020. However, the landscape is set to change with the crisis, in the coming quarters. —FE
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