Infosys Earnings for Q4 2016-2017 | Bizofit Point of View

Infosys Q4 2017 Earnings Highlights:

  1. Dr. Vishal Sikka alludes to “distractions” in its earnings release, hinting that the recent tussle between the Board and the Founders may have impacted its performance
  2. Infosys stock not reacting well to guidance and performance
  3. FY 17 revenues crossed $10 billion, at $10,208 million
  4. FY 17 revenues grew 7.4% in USD terms; 8.3% in constant currency terms
  5. FY 17 operating margin at 24.7% as compared to 25.0% in FY 16
  6. FY 17 Basic EPS at $0.94, a growth of 4.3% YoY
  7. Q4 revenues grew 0.7% QoQ in USD terms; flat in constant currency terms
  8. Q4 operating margin at 24.7% and Basic EPS at $0.24
  9. Liquid assets including cash & cash equivalents and investments at $5,979 million as on March 31, 2017
  10. FY 18 revenue guidance at 6.5%-8.5% in constant currency. FY 18 operating margin guidance at 23%-25% (below estimates)
  11. Infosys Board says $2 billion to be paid to shareholders in FY18
  12. In light of Infosys guidance, Nasscom likely to further lower its revenue growth guidance for FY 18
  13. “Execution challenges”, says Vishal Sikka
  14. 20 Bn $ by 2020 doesn’t seem likely
  15. Onsite development centers being planned to mitigate visa related risks

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