Infosys had a great year but CEO Salil Parekh expects the next one to be more than twice as good

Infosys had a great year but CEO Salil Parekh expects the next one to be more than twice as good
Infosys CEO Salil ParekhBCCL
  • Infosys had a blockbuster year with large deal signings hitting at all time high of $14 billion.
  • CEO Salil Parekh expects the coming year to be even better with double digit revenue growth on the charts.
  • The company has forecast that it will be able to hit anywhere between 12% to 14% revenue growth.
  • However, between the months of January to March, Infosys saw its profit after tax fall by 1.3% in dollar terms.
Infosys saw its revenue grow by 5% ⁠— without factoring in exchange rate changes ⁠— this past year. But chief executive Salil Parekh is eyeing double digit growth in the coming 12 months.

The Bengaluru-based technology services giant has issued a revenue growth guidance of 12% to 14% for the year ending March 2022. “A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22,” said Parekh in the earnings report.


It also expects its operating margins to remain between 22% to 24%. This is lower than the 25.4% level that Infosys has sustained for the last three quarters — likely accounting for increase in costs as employees rejoin office.
Advertisement


However, between the months of January to March, Infosys saw its profit after tax fall by 1.3% in dollar terms.

Big deals, big money — and even bigger revenue growth


The pandemic had many businesses speeding up their plans to go digital, and that played in Infosys favour. The company saw an all-time high in bringing in large deals worth $14.1 billion in the last twelve months, ending March 2021.
Advertisement


While only $2.1 billion came in during the latest quarter — from 25 new large deals — the company set a new record between the months of July to September at $7.13 billion. The company, now, officially earns more than half of its revenue from digital services.


The company plans to continue with mergers and acquisitions activity in the coming year. “With M&A, we will continue with our focus on digital and cloud acquisition opportunities. We will continue to look at the cultural and strategic fit, and of course, the price of the asset that we’re looking to acquire,” said Parekh during the earnings call.

Advertisement
SEE ALSO:
Infosys will buy back shares at ₹1,750 in the open market

WhatsApp's new privacy policy doesn't give you choice — and could limit your options in the future too

Indian astronomers spot over 200 new stars in the Pacman Nebula — and 51 of them are yet to reach adulthood

{{}}