Infosys has recently reported a disappointing profit of ₹7,033 crore for the fourth quarter, marking an 11.8% decline compared to the previous year. The Indian IT powerhouse also forecasted a lackluster revenue growth outlook for the upcoming fiscal year, attributing this to ongoing challenges in North America and the tightening of client budgets. Despite these setbacks, the company announced a significant stock option grant for its CEO, Salil Parekh, in conjunction with its quarterly results.
Key Financial Highlights
In a regulatory announcement, Infosys confirmed that its board has approved performance-based stock incentives worth ₹51.75 crore for its Managing Director and CEO. Additionally, the board approved the issuance of 5,000 restricted stock units to eligible employees while unveiling the fourth-quarter financial results.
- Q4 Profit: ₹7,033 crore (down 11.8%)
- Full FY25 Profit: ₹26,713 crore
- Revenue Growth: 6.06% to ₹1,62,990 crore
- Major Contracts: Secured deals worth $11.6 billion with a 56% share of net new wins.
Stock Incentive Breakdown for Salil Parekh
The stock grants allocated to Parekh include various types of restricted stock units (RSUs) designed to incentivize performance:
- Annual Performance Equity Grant: RSUs valued at ₹34.75 crore.
- Annual Performance ESG Grant: RSUs worth ₹2 crore.
- Annual Performance TSR Grant: RSUs totaling ₹5 crore.
- 2019 Annual Performance Equity Grant: Rs. 10 crore in RSUs under the Infosys Expanded Stock Ownership Program.
Insights into the Future
As the second-largest IT firm in India, Infosys is navigating a challenging economic landscape. The company’s cautious revenue guidance of 0-3% for FY26 reflects broader industry trends driven by client budget constraints. Investors and market analysts will be closely monitoring how Infosys adapts to these market dynamics in the coming months.
For more detailed updates on Infosys and its financial performance, feel free to explore additional resources on the company’s official website or check out our previous articles on IT sector trends and stock market analysis.
