Infosys Q3 Results: Company reports consolidated PAT of Rs 6,106 crore; FY24 revenue guidance revised to 1.5%-2.0%

Infosys Q3 Results: Infosys on Thursday, January 11, reported a consolidated profit after tax (PAT) or net profit of Rs 6,106 crore for the quarter that ended December 31, 2023 (Q3 FY24). The figure fell 1.7 per cent on a QoQ basis and 7.3 per cent YoY. The profit missed Zee Business analysts' estimates. The research desk had pegged the profit at Rs 6,220 crore, up 0.1 per cent QoQ.

Revenues for the quarter under review came in at Rs 38,821 crore, down 0.4 per cent QoQ and up 1.3 per cent. In constant currency (CC) terms, revenue declined 1 per cent YoY and QoQ.

Zee Business analysts had pegged the IT firm’s revenue for the three months at Rs 38,525 crore, a decline of 1.2 per cent on a QoQ basis. In dollar terms, revenue was estimated to drop 1.9 per cent sequentially to $4,627 million, and 1.6 per cent in constant currency terms on account of seasonal weakness.

Operating profit slipped 3.8 per cent QoQ and 3.4 per cent YoY to Rs 7,961 crore. Operating margin stood at 20.5 per cent, down 0.7 per cent QoQ and 1 per cent YoY. 

The company also revised FY24 revenue guidance to 1.5 per cent – 2.0 per cent while its operating margin guidance stands at 20 per cent -22 per cent.

“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital, and cloud to cost, efficiency, and automation,” said Salil Parekh, CEO and MD.

“Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses," Parekh added.
 

KEY HIGHLIGHTS

Source: Earnings filing

Source: Earnings filing

“Q3 performance is a demonstration of our strong execution capabilities reflected in improved operational efficiencies achieved under ‘Project Maximus’, despite a challenging environment”, said Nilanjan Roy, Chief Financial Officer. “Cash generation remained robust, with FCF to net profit conversion for Q3 at 90.6%," Roy added.

Attrition Rate

The company's attrition rate declined to 12.9 per cent from 14.6 per cent in the previous quarter and 24.3 per cent in the year-ago period. 

Acquisition of InSemi

Infosys also announced a definitive agreement to acquire InSemi, a leading semiconductor design and embedded services provider. This strategic investment further strengthens Infosys’ engineering R&D capabilities and demonstrates its continued commitment to co-create with global clients to help them navigate their digital transformation journey.