Infosys AGM: Key highlights!

Infosys AGM: Key highlights!

Last updated: 21 Jun, 2021 | 12:24 pm

Infosys AGM: Key highlights!

Infosys held its 40th Annual General Meeting on June 19th, Saturday. We have prepared a short update of the announcements, and the outlook going forward.

  • Revenue and margin guidance: Infosys aims to achieve revenue growth of 12-14% in the Apr- Mar 22 period. The company has also guided for a margin of 22-24%.
  • Deal wins: Infosys was able to bag a large deals worth $14 billion in FY21. Of this, 66% were from the new clients. Infosys' digital business now accounts for nearly 48.5% of its total revenues. The chart below shows overall revenues and net profit of Infosys in the last 4 fiscal quarters of FY21.

  • Strategic Partnerships: Infosys established two strategic partnerships in the previous financial year. One was with Daimler for hybrid cloud-powered innovation and transforming its IT infrastructure. Second with Vanguard for the digital transformation of its defined contribution recordkeeping business.
  • Increase in large clients accounts: An important parameter to evaluate an IT company is to examine the number of large accounts it has - $100 million and above. Infosys large accounts increased from 28 to 32 in FY21.
  • New hirings:  Infosys hired 19,230 graduates in India and 1,941 – both graduates and associate degree holders – outside India.
  • Future roadmap: Infosys said that it will focus on strategic clients to provide long-term sustainable growth. The company plans to ramp up its investment in research and innovations, to further expanding footprint across the globe.  

While Infosys had missed estimates on both topline and bottomline in the latest quarter, it has maintained a robust revenue guidance for FY22. Through the year, Infosys was able to post robust results due to its record high deal wins, and implementing cost cuts to maintain its revenue and operational profitability. FY21 has been a very good year with superior shareholder returns, backed by robust operating metrics and strong growth across verticals and free cash flows. Infosys shares had gained by 116% in the last financial year. 

The Covid-19 pandemic has forced a tectonic shift in business processes to move towards greater digitization. This has helped the IT sector to bounce back faster than other industries. Infosys said that the relevance of its offerings is resonating with its clients in these times. Infosys looks well-poised to expand its market share further in the upcoming quarters.