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