Infosys, the Bengaluru-headquartered IT services provider, unveiled its Q4FY24 earnings on Thursday, April 18, with revenue for the January-March quarter declining 2.1 per cent sequentially. However, it stood flat on a year-on-year basis, with a growth of just 0.2 per cent.

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The revenue for the period stood at $4564 million, flat year on year and decrease of 2.2% sequentially in constant currency. Large deal TCV for the quarter was $4.5 billion, with 44% being net new. 

The consolidate net profit at the concern also came in higher than the Street estimates at Rs 7,969 crore, registering 30.5 per cent growth.

Operating margin at the company for the review period came in at 20.1 per cent as against 20.5 per cent in the preceding quarter, a decline of 40 bps over the previous quarter. This is largely on expected lines.  Free Cash Flow was robust at $848 million. 

Free cash flow of $848 million in Q4 was highest in the last 11 quarters driven by our relentless focus to improve working capital cycle. Consistent with the objective of giving high and predictable returns to shareholders, the Board has approved the capital allocation policy under which the company expects to return 85% over the next 5 years and progressively increase annual Dividend Per Share”, said Jayesh Sanghrajka, CFO. “Operating margin expansion in the medium-term and improving cash generation continue to remain our priorities underpinned by early success in Project Maximus”, he added. 

Also, the company on the sidelines approved a final dividend of Rs 20 per share for  the financial year ended March 31, 2024 and additionally a special dividend of Rs per equity share.

As per the filing with the exchanges, the company's active clients as of the March ended quarter were at 1882 with 98 new clients added during the period.

“We delivered the highest ever large deal value in the financial year 2024. This reflects the strong trust clients have in us. Our capabilities in Generative AI continue to expand. We are working on client programs, leveraging large language models with impact across software engineering, process optimization, and customer support, said Salil Parekh, CEO and MD. “I would like to thank our 317,000 employees across the world that are working to create value for our clients.” he added.

For FY25, the company has pegged revenue growth guidance of 1-3 per cent in CC and operating margin to fall in the range of 20-22 per cent.

The headcount at the company at the March ended quarter stood at 3,17,240, while it was 3,22, 663 in the December ended quarter, signifying a voluntary attrition rate of 12.6 per cent in comparison to 12.9 per cent in the previos quarter.

On the sidelines, the company also informed that it has inked a defiinite agreement to acquire in-tech, a leading Engineering R&D services provider focused on German automotive industry. This strategic investment further strengthens Infosys’ Engineering R&D capabilities and reaffirms its continued commitment to global clients to navigate their digital engineering journey.

Ahead of its earnings later today, shares of the company ended 0.41 per cent higher at Rs 1420.55 per share on the BSE.