Following in the footsteps of Wipro, India’s second-largest IT services firm Infosys, too, on Monday did not give any guidance for fiscal 2021 while announcing its fourth quarter results for FY2020
“Considering the business uncertainty emanating from COVID-19, the company is unable to provide guidance on revenue and margins for FY21 at this stage. The company will provide guidance after visibility improves,” said Infosys.
Infosys CEO and MD Salil Parekh, while speaking about the mitigatory steps taken due to the pandemic, said, the Infosys’s team has achieved 93% remote working to ensure consistent service delivery for clients in this rapidly-changing environment.
“While the immediate short-term will be challenging, looking ahead, we can see that there is a strong interest to consolidate with partners with high-quality and agile service delivery and strong financial resilience. I am confident we will emerge from this stronger,” he added.
‘Displacement in model’
Infosys COO Pravin Rao, too, while speaking on the results, said the impact caused by the COVID-19 over the last weeks of March has led to a “significant displacement” in the operating model while severely testing the business continuity plans of companies.
Meanwhile, Infosys reported a 6% rise in its consolidated net profit to ₹4,335 crore for the fourth quarter of fiscal 2020.
Infosys’ revenue grew 8% to ₹23,267 crore for the quarter under review from the ₹21,539 crore of the corresponding period of the last fiscal, the company’s statement added.
Infosys’ FY20 net profit was up 8% to ₹16,639 crore, while revenue rose 9.8% to ₹90,791 crore from the previous fiscal. The company declared a final dividend of ₹9.50 per share.
Commenting on the future of business, Mr. Parekh said, “Clients want to consolidate with stronger players like us. “We feel well-positioned in terms of staying relevant to clients globally in helping them in their digital play, cloud virtualisation, automisation and cost-cutting initiatives.”
“Clearly, there is a concern across industries and around the globe. Some discretionary work has come under pressure which is visible in Q1, Mr. Parekh added.
Responding to a query on the impacft of COVID-19’on business, Mr. Rao said, “Several sectors are under pressure. There is a struggle in the cards and the payment space.”
‘Supply chain broken’
“Manufacturing is under huge challenge in terms of both demand and supply. The industrial supply chain has completely broken down. Aviation, media and entertainment sectors are going through tough times. Communication is doing reasonably well; however, 5G roll-out will be delayed,” he added.
All sectors are under pressure currently from the crisis emanating from the pandemic; the IT sector another d export sectors more so because of their exposure to the markets most impacted by the virus.
News Source: The Hindu