BENGALURU: Buoyed by strong new age digital deals, which now make up more than half of its top line, Infosys said it expects its revenue in FY22 to grow at 12-14% on a constant currency basis. The double-digit growth reflects a sharp turn-around from the difficulties in the early months of the pandemic.
“The guidance is a strong indication that we see very good demand…Demand is broad-based, almost all of the industries are providing a good outlook for demand,” Infosys CEO & MD Salil Parekh said on Wednesday.
The company is clearly today the bellwether in the industry. In the last quarter, its dollar revenue grew by 9.6% year-on-year in constant currency. Rival TCS, which announced results on Monday, grew by 5.9% in the quarter. In the full year, while Infosys grew at 5% in constant currency, TCS’s revenue fell by 0.8%.
However, investors seemed to have expected Infosys’s Q4 performance to be better than what it turned out to be. The company’s share price was down by almost 5.5% on the NYSE in morning trade (the results were announced after Indian stock markets had closed).
Parekh said the company sees tremendous growth in digital, with all clients being on different stages of their digital activities, be it in cloud, data & analytics or cybersecurity.
Infosys also said it is buying back shares worth $1.2 billion (about Rs 9,200 crore) this year and paying a dividend of $850 million (Rs 6,400 crore).
TOI had reported on Monday that the company was considering a buyback. The shares will be bought from the open market at an offer price not exceeding Rs 1,750 per share.Infosys recommended a final dividend of Rs 15 per equity share for the previous fiscal.