Infosys pegs 2023-24 constant currency revenue growth at 4-7%, margin at 20-22%

Infosys guidance: Infosys (INFY) — India's second largest IT services firm — on Thursday pegged revenue growth in constant currency terms in a range of 4-7 per cent for the current financial year, which ends in March 2024. That marked the first revenue guidance by a blue-chip IT company in the corporate earnings season that began this week, with Tata Consultancy Services (TCS) reporting a muted set of quarterly numbers. TCS — the Tata group IT major that is the country's largest IT firm — does not give specific guidance for revenue or earnings.

Analysts stared at the sharp fall in the Bengaluru-based IT services provider's revenue guidance compared with the previous year. In January 2023, Infosys pegged revenue growth for 2022-23 at 16-16.5 per cent, having entered the year with a projection of 13-15 per cent.

Infosys projected its operating margin between 20 per cent and 22 per cent for the current financial year (April 2023-March 2024) — as against 21-22 per cent for the previous year (January 2023), according to a company statement. 

Infosys guidance: FY24 vs FY23

Here's how India's second largest software exporter fared in the year gone by: 

Infosys Q4 results: Key takeaways

• Top-line & bottom-line: Infosys saw seven per cent contraction in net profit on a quarter-on-qurater basis to Rs 6,128 crore for the quarter ended March 2023, according to the statement. Revenue came in at Rs 37,441 crore, a 2.3 per cent decline sequentially. Revenue in dollars declined 2.3 per cent to $4,554 million.
• Margin: The company's operating margin shrank by 50 basis points to 21 per cent. 
• Attrition: Infosys reported attrition of 20.9 per cent on a last-twelve-months (LTM) for the final quarter of 2022-23 — better than 24.3 per cent for the previous three months, and 27.7 per cent for the quarter ended March 2022. 

Here's where Zee Business analysts had placed their estimates for Infosys: 

ALSO READ: Infosys misses estimates with Q4 PAT of Rs 6,128 crore, declares final dividend of Rs 17.5 per share

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