Revenues from Digital offerings at $ 2.79 billion (25.5% of total revenues) for FY 18. In Q4, digital revenues grew sequentially by 3.6% in constant currency terms
The company entered into a definitive agreement to acquire WongDoody Holding Company, Inc., a
US-based digital creative and consumer insights agency
FY 18 revenues grew by 7.2% in USD terms, 5.8% in constant currency terms, with operating margins at 24.3%
Bengaluru, India – April 13, 2018
Q4 revenues grew year-on-year by 5.6% in INR terms; 6.4% in constant currency terms
Q4 revenues grew sequentially by 1.6% in INR terms; 0.6 % in constant currency terms
Q4 operating margin improved to 24.7% from 24.3% in Q3 18
Q4 Basic EPS at `16.98; year-on-year growth of 7.7%
FY 18 Basic EPS at `71.07; year-on-year growth of 13.2%
FY 18 Basic EPS of `71.07 includes positive impact of `5.88 from Advance Pricing Agreement
(APA) with the US IRS concluded earlier in the year
Board recommended a final dividend of `20.50 per share and a special dividend of `10 per share
FY 19 revenue guidance in constant currency at 6%-8%; FY 19 operating margin range at 22%-
Consolidated results under International Financial Reporting Standards (IFRS) for the quarter ended
March 31, 2018
Revenues were `18,083 crore for the quarter ended March 31, 2018
YoY growth of 5.6%; QoQ growth of 1.6%;
Operating profit was `4,472 crore for the quarter ended March 31, 2018
YoY growth of 6.2%; QoQ growth of 3.5%;
Net profit was `3,690 crore for the quarter ended March 31, 2018
YoY growth of 2.4%; QoQ decline of 28.1%; Q3 FY 18 net profits included positive impact of
`1,432 crore on account of conclusion of an APA with the US IRS
Basic EPS at `16.98 for the quarter ended March 31, 2018
Consolidated results under International Financial Reporting Standards (IFRS) for the year ended
Revenues were `70,522 crore for the year ended March 31, 2018
YoY growth of 3.0% in reported terms; 5.8% in constant currency terms
Operating profit was `17,148 crore for the year ended March 31, 2018
YoY growth of 1.5%
Net profit was `16,029 crore for the year ended March 31, 2018
YoY growth of 11.7%
FY 18 net profits included positive impact on account of conclusion of an APA with the US IRS
“I am pleased with our healthy revenue growth, profitability, and cash generation in Q4. Our robust performance is a reflection of the strong impact we have with our clients and the dedication of our employees. ‘Navigating Your Next’ is our aspiration of how we will partner with each one of our clients.” said Salil Parekh, CEO. “We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, Energizing our client’s Core technology landscape via AI and automation, Re-skilling our employees, and Expanding our localization in markets such as US, Europe, and Australia.”
“Revenue productivity per employee was stable during the year as the benefits of automation and newer services kicked in. Employee utilization remained healthy.” said Pravin Rao, COO. “During the quarter, we provided highest level of variable payouts in several years. We will be rolling out compensation increases for a large part of our workforce effective April 1st.”
“Our operating margins during the quarter and fiscal 2018 were resilient due to unwavering focus on productivity and operational efficiency, leading to a robust cash generation. During the year, the company implemented the capital allocation policy including the successful closure of $2 billion share buyback program in December 2017 and healthy increase in Dividend Per Share for the year.” said M.D. Ranganath, CFO. “Our margin guidance reflects our emphasis on digital-led growth and focused investments in this journey.”
The Company’s outlook (consolidated) for the fiscal year ending March 31, 2019, under IFRS is as follows:
Revenues are expected to grow 6%-8% in constant currency*;
Revenues are expected to grow 8.2%-10.2% in INR terms based on the exchange rates as of
March 31, 2018**
*FY 18 constant currency rates – AUD/USD – 0.78; Euro/USD – 1.18; GBP/USD – 1.33
**Currency rates as of March 31, 2018 – 1 US $ = ` 65.18
The Board, in its meeting on April 13, 2018, reviewed and approved the Capital Allocation Policy of the Company after taking into consideration the strategic and operational cash requirements of the Company in the medium term.
The key aspects of the Capital Allocation Policy are:
approximately ` 2,600 crore (approximately $400 million*) in June 2018
*USD/INR exchange rate at 65.00
For the Financial Year 2018, the Board recommended a final dividend of `20.50 per share ($0.31 per ADR) amounting to `5,349 crore ($821 million) including DDT. After including the interim dividend of `13 per share, the total dividend for Financial Year 2018 will amount to `33.50 per share resulting in a payout of `8,771 crore ($1,349 million) including DDT, which will amount to approximately 70% of free cash flow for the Financial Year 2018. The total dividend of `33.50 per share is approximately
30% higher than total dividend of `25.75 per share for Financial Year 2017.
The aggregate dividend including the special dividend of `10 per share ($0.15 per ADR) works out to
`43.50 per share ($0.67 per ADR) resulting in an aggregate dividend payout of approximately `11,371 crore (approximately $1,749 million), including DDT.
The Board appointed Kiran Mazumdar-Shaw, Independent Director as the Lead Independent Director of the Board.
On April 13, 2018, the Company entered into a definitive agreement to acquire WongDoody Holding Company, Inc., a US-based digital creative and consumer insights agency for a total consideration of up to $75 million including contingent consideration and retention payouts, subject to regulatory approvals and fulfillment of closing conditions.
In the quarter ended March 31, 2018, on conclusion of a strategic review of its portfolio of businesses, the Company initiated identification and evaluation of potential buyers for its subsidiaries, Kallidus and Skava (together referred to as “Skava”) and Panaya (collectively referred to as the “disposal group”). The Company anticipates completion of the sale by March 2019 and accordingly, assets amounting to `2,060 crore ($316 million) and liabilities amounting to `324 crore ($50 million) in respect of the disposal group have been reclassified and presented as “held for sale”.
On reclassification, an impairment loss of `118 crore ($18 million) in respect of Panaya has been recognized in the consolidated profit and loss for the quarter and year ended March 31, 2018. The corresponding write down in the investment value of Panaya in the standalone financial statements of Infosys Ltd. is `589 crore ($90 million).
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