Despite Of Larger Deals Infosys Grow On A Slower Pace

In FY14, the company had a revenue growth of 11.5 percent at $8.24 billion which was not up to the mark of the promise made by the company as the revenue growth declined by 0.4 percent to $2.09 billion with a net profit up to 5.2 percent. But this time in FY15 the company has not over delivered anything, instead it has stuck to its promise of under delivering in the fourth quarter.

A company’s revenue growth depends on factors like segments and geographies. In case of Infosys, the company has remained stable both in terms of segments and geography. The margin expansion of the company was one of the notable differences during this quarter. The operating margins rose to 25.5 percent from 50 basis points and there was increment in dividend payout ratio which was 40 percent of the post-tax profits.

As promised by Narayan Murthy in 2013 the tightening costs resulted in better margins over the last three quarters, but the margins seems to be declining in coming future. Thus the company needs to improve a lot in terms of its growth to compete with other industries.

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