Infosys Q1 Results: India’s IT major Infosys on Thursday reported a 10.9 per cent year-on-year jump in its net profit to Rs 5,945 crore, compared with Rs 5,362 crore a year ago. Its revenue during April-June 2023 rose 10 per cent to Rs 37,933 crore, against Rs 34,470 crore in the year-ago period.
On a quarterly basis, Infosys reported a fall of 3 per cent in its net profit in Q1 FY24.
On the outlook, Infosys has revised downwards its revenue growth guidance to 1-3.5 per cent in the constant currency term for the financial year 2023-24, against 4-7 per cent earlier, amid an uncertain global economic environment. The company’s guidance on operating margin for FY24 now stands at 20-22 per cent.
Infosys’s operating profit during Q1 FY24 rose 14.1 per cent to Rs 7,891 crore, compared with Rs 6,914 crore in the corresponding quarter a year ago, according to a regulator filing. Its total operating expenses stood at Rs 3,660 crore during Q1 FY24, 14.8 per cent higher as compared with Rs 3,187 crore a year ago.
Infosys’ large deal TCV (total contract value) for the June 2023 quarter stood at $2.3 billion, with net new of 56.1 per cent. Its operating margin remained stable at 20.8 per cent. ROE improved 180 bps to 32.8 per cent.
The company’s attrition declined further to 17.3 per cent during the first quarter of the current financial year 2023-24. Infosys’ total employees stood at 3,36,294 at the end of June 2023, which is a decline of 6,940 employees as compared with the previous quarter ended March 2023.
Infosys’ IT services attrition had stood at 20.9 per cent during the March 2023 quarter, compared with 24.3 per cent in December 2022 quarter.
Salil Parekh, CEO and MD of Infosys, said, “We had a solid Q1 with a growth of 4.2 per cent and large deals of $2.3 billion which helps us to set a strong foundation for future growth. Our generative AI capabilities are expanding well, with 80 active client projects. Topaz, our comprehensive AI offering, is resonating well with clients. We see this being transformative for clients and enhancing our overall service portfolio.”
He added that the company has expanded the margin improvement programme with a holistic set of actions for the short, medium and long-term, working
on five key areas, supported by our leadership team.
Nilanjan Roy, chief financial officer of Infosys, said, “Q1 operating margins were resilient in an uncertain macro environment on the back of our continued focus on cost optimisation. The company’s rigorous operational discipline including improved productivity measures and higher utilization helped margins for the quarter.”
He added that free cash conversion was robust at 96.6 per cent of net profits. Execution of strong capital allocation policy resulted in higher payouts to investors and improved ROE to 32.8 per cent.
Shares of Infosys on Thursday declined Rs 25.50, or 1.73 per cent, to close at Rs 1,448.85 apiece on the BSE.
In the March 2023 quarter, Infosys had posted a 7.8 per cent y-o-y jump in its net profit at Rs 6,128 crore.
Kick-starting India Inc’s Q1 FY24 earnings season, TCS last week reported a consolidated net profit of 16.8 per cent at Rs 11,074 crore for the June 2023 quarter. HCL Technologies Ltd. on Wednesday declared Rs. 3,534 crore net profit in Q1 for the financial year 2023-24 along with an interim dividend of Rs10/share.
Wipro reported a consolidated net profit of nearly 12 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended June to Rs 2,870 crore. Consolidated revenue increased 6 per cent to Rs 22,831 crore.
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